• Assetization allows managers to transform any type of asset into tradable instruments.
• Listed ETPs enable diversification, access to global capital, and customized products.
• FlexFunds’ securitization program reduces time and costs, adapting to the manager’s profile. For more information, you can contact our experts.

Asset securitization allows managers to transform various types of assets into liquid and transferable financial instruments, facilitating diversification, global capital access, and the creation of customized products.

Through asset securitization, portfolios can be converted into tradable securities, also known as ETPs (exchange-traded products).

Assetization has become an essential tool for those seeking to expand access to new asset classes.

Within this group of instruments, securitization –like the one developed by FlexFunds–  is redefining how financial products are structured, managed, and distributed.

Thanks to assetization, managers not only diversify and optimize risk, but also design customized products that were once reserved for large institutions.

Assetization is transforming the role of the asset manager, allowing them to create liquid and scalable vehicles that expand access to new investment classes.

Within securitization processes, “asset managers are responsible for selecting underlying assets, monitoring the portfolio and, if foreseen, replacing underlying assets,” according to a blog post by PwC.

The flexibility of the securitization model allows it to be applied in fields ranging from real estate to private debt. For example, a manager can pool properties or rental flows and securitize them into a listed note.

“Forward-thinking managers have demonstrated that well-structured securitisation programmes can transform distribution capabilities and operational efficiencies,” according to FundsFront.

A strategic manager

Currently, the asset management activity is undergoing a reconfiguration. This is amid the active search for diversification and exposure to new geographies, as well as the disruption of new technological trends.

The traditional management model is being replaced by a more versatile profile that combines technical capabilities with a structuring vision.

The manager’s role now involves selecting assets strategically, but it is increasingly relevant how to package and distribute them to the market in a more competitive environment.

In this context, the manager now combines financial knowledge, international regulation, and market vision. Their focus is now on creating solutions that expand capital access and improve management efficiency.

The assetization process

Assetization allows the manager to transform a set of assets into a liquid, tradable financial instrument, expanding the pool of potential investors.

Among its key advantages is operational efficiency, enabling the packaging and issuance of investment products without creating a conventional fund. 

These instruments provide global access, as they can be distributed internationally under clear regulatory frameworks. They also offer a level of scalability, allowing managers to replicate strategies without multiplying administrative or compliance costs.

Highlighted Phrase: Securitization converts portfolios—from real estate to private debt—into listed ETPs, facilitating diversification, global distribution, and capital raising.

FlexFunds is a leading provider in the design and launch of investment vehicles, with one of the most advanced asset securitization programs.

• The securitization process begins with a personalized asset evaluation and an in-depth analysis to design a tailored ETP.
• Due diligence is then conducted, and a commitment letter is signed outlining conditions and responsibilities.
• Next, the client works with the team on structuring: preparing and reviewing key documents such as the series memorandum, the constituting instrument, and the portfolio management agreement.
• The ETP is then issued through an Irish SPV, the strategy is packaged as collateral, and ISIN/CUSIP codes are generated for distribution.
• Finally, the ETP is listed and available for trading on Euroclear, allowing investors to easily purchase it through custodians and private banking platforms.

FlexFunds’ role

FlexFunds coordinates top notch services providers involved in the design and issuance, and delivers a solution that reduces time and costs compared to conventional structures.

The program accommodates diverse assets and allows the creation of vehicles fully adapted to the manager’s profile and objectives.

The created ETPs, called “Flex,” are structured notes backed exclusively by the underlying assets, isolating the risk from the issuer’s other operations.

According to FlexFunds, its securitization program enables the creation of efficient investment vehicles tailored to the manager’s profile, reducing time and costs compared to conventional structures.

Being Euroclearable products, they allow global trading and provide investors with transparency, access, and operational ease.

This model is particularly useful for private fund managers, real estate managers, hedge funds, or those seeking liquidity, financing, or scalability from assets that generate cash flows.

In an environment where customization and speed make the difference, assetization serves as a bridge between the modern manager and the market of the future.

Those who adopt this model will be able to offer products more aligned with the current needs of their clients in their pursuit of diversification.

For more information on the operational advantages and the workings of securitization with FlexFunds, consult our experts.

Sources:

• https://www.pwc.lu/en/securitisation/parties-involved-in-securitisation-transactions.html
• https://fundfront.com/blog/securitisation-in-alternative-investments/
• https://www.flexfunds.com/flexfunds/portfolio-securitization-what-is-it-and-why-is-it-a-source-of-liquidity/
• https://www.flexfunds.com/flexfunds/asset-securitization-how-it-works/
• https://www.flexfunds.com/solutions/how-do-securitization-bonds-work-and-what-is-their-role-in-corporate-financing/ 
• https://www.flexfunds.com/flexfunds/what-does-flexfunds-do/ 
• https://www.flexfunds.com/solutions/how-an-securitization-process-is-performed-with-flexfunds/