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A Global Review of Crypto M&A

Alessandro Bianchi says typically, mergers and acquisitions (M&A) are often conducted by large corporations. Such institutions aim to retain market dominance by growing new talent, expanding market reach, and improving operational capacity. Some M&A transactions may aim to limit market competition.  In crypto, M&As help fund struggling projects. The M&A process requires deep pockets, and parties often conduct the process with high confidentiality. Arguably, pulling off a successful a M&A transaction requires parties to be very trustworthy of each other. 

Crypto VC funds have increased in the recent past. The biggest of these include Coinbase Ventures, Andreessen Horowitz (a16z), and Binance Labs. These resource pools have overseen success of crypto protocols, advancing efficiency of blockchain solutions.

Acquisitions and Deal Sizes

report by PwC indicates a surge in crypto M&A activity from 2020 to 2021. As crypto prices remained bullish through 2021, the value of crypto M&A soared by 4,800% from 2020. About $55 billion worth of crypto settled M&A processes in 2021, up from $1.1 billion the previous year. Some of the top M&A deals of crypto firms in 2021 include Far Peak Acquisition-Bullish Limited for $8 billion and Concord Acquisition Corp-Circle Internet Financial for $6 billion. The average deal size for crypto M&As for the year was about $180 million.

Top Crypto M&As of 2021

Most crypto M&A transactions that closed in 2021 were in the Americas. This region accounted for 51% of all deals, compared to Europe, the Middle East, and Africa’s (EMEA) 33% and the remaining 16% in the Asia Pacific. Despite the Americas having the most deals, the EMEA region led in deal value. Primarily, deals conducted in EMEA were on average of higher value than those in the Americas and the Asia Pacific. 

PwC Report Comparing M&A Activity in 2020 and 2021

Crypto Funds and Investments

Crypto M&A transactions are expected to grow, owing to the expanding markets for blockchain products, and the simplified funding processes powered by crypto.In addition, more crypto investment funds have entered the market. 49 new funds were added in 2021 alone, bringing the total to over 500 VCs and crypto funds. Evidently, there’s an increasing appetite among investors to enter crypto markets. Since the sector is in its formative stages, crypto provides a massive potential for growth and consequently, huge returns.  Crypto funds are helping accelerate blockchain projects, and the technology’s novelty means that new products are readily adopted if they offer practical solutions. Today’s investors are hungrier for success, owing to previously successful crypto funds. The investors are also looking to diversify their investment portfolios with crypto assets through the funds.

Prospects for 2022

As new crypto trends emerge, especially with the uptake of the metaverse, M&A transactions will be inevitable through 2022. Despite falling crypto prices, enthusiasts remain optimistic that the markets will bounce back. Also, funding crypto for M&A is more accessible as the decentralized nature allows individuals to invest from any place in the world. The dismal crypto market performance, however, will should reduce  the number of M&A transactions this year. 

About Chatsworth Securities LLC
Chatsworth Securities LLC is an investment banking firm that has been providing financial advisory services to corporations and entrepreneurs since 1996. Chatsworth advises on both domestic and international M&A transactions, fundraising and capital raises for large and small companies around the globe. Chatsworth has participated as an underwriter in over six hundred public offerings and has raised over $5 billion for traditional and alternative money managers and their funds.

How NFT Technology is Transforming Supply Chain and Cargo Shipping

Alessandro Bianchi says Non-Fungible Tokens (NFTs) gained widespread popularity in 2021, benefiting investors in millions of dollars. While the previous year was primarily NFT art projects and collections, this year, people are experimenting with the real-world use cases of this novel technology. Among the many industries experimenting with NFT solutions, logistics and cargo shipping will be the most effectively revolutionized.

Non-fungible tokens (NFTs) have the potential to radically disrupt the supply chain sector efficiently and effectively by addressing specific pain points that cause significant delays. Due to the digital footprint and data tracking capabilities of NFTs, these pain points can be addressed.

With NFTs, we could find out information about specific products, like who owns them now, where they are, and what their weight, size, and certifications are. This data is updated in the NFT as the product moves through the supply chain, which is saved on the blockchain network. When the items arrive at their destination, the complete history of the product’s entire journey from its source to delivery is provided.

Pros of Using NFTs in Logistics and Cargo Shipping

Here are some advantages of using NFTs in Logistics and Cargo Shipping:

  • Security: NFTs ensure secure information transmission between supply chain parties. The NFT data is kept on the blockchain network as a smart contract, prohibiting unauthorized loss, deletion, or replication. Each network node stores everything.
  • Traceability: When dealing with food, pharmaceutical products, chemicals, or delicate goods, it’s crucial to know their logistics and manufacturing procedures, where they’ve been, and how long they’ve been there. With NFTs, anyone may get real-time product traceability information thanks to their transparency.
  • Responsibility: With NFTs, we can figure out who’s in control of a product at any given moment. To issue an NFT, both parties must engage in a liability agreement. In other words, an NFT cannot be transmitted unless the counterparty agrees to accept it, and items cannot be delivered until the party responsible has acquired the NFT.

The Takeaway – The future of Supply Chain with NFT technology

Blockchain, NFTs, and smart contracts are all new technologies still in the early phases of development. While many sectors, including Supply Chain and Cargo Shipment, are experimenting with this new technology, the future remains unclear. Time will tell if NFT technology will survive to change the supply chain or fail to scale. 

About Chatsworth Securities LLC
Chatsworth Securities LLC is an investment banking firm that has been providing financial advisory services to corporations and entrepreneurs since 1996. Chatsworth advises on both domestic and international M&A transactions, fundraising and capital raises for large and small companies around the globe. Chatsworth has participated as an underwriter in over six hundred public offerings and has raised over $5 billion for traditional and alternative money managers and their funds.

Finance Solutions Applied to Blockchain

The investment banker Alessandro Bianchi says that in financial services, blockchain has the ability to completely change the structure of banks, modernize stock exchanges and speed up transactions with security. Intermediates in financial services can be eliminated by using blockchain. According to Alessandro Bianchi, blockchain reduces costs and can optimize many processes. With the help of blockchain banks can speed up the reconciliation of documents during factoring. Blockchain provides security during the transactions and allows the banks to gain access to common database of fraudsters to avoid the frauds.

The investment banker says that:

  • Blockchain provides fast and safe money transfer
  • Blockchain automates the process and process the transactions quickly
  • Blockchain ensures the immutability of transactions
  • Blockchain has high level of transparency
  • Blockchain provides fast delivery of financial services
  • It has lower fees as compared to conventional financial service providers

Transparency in international commercial transactions is made possible by blockchain technology, which benefits all parties involved. Public ledgers keep track of the location of products in transit, making this feasible. Blockchain technology may help importers and other parties in the trade save time and money by reducing the complexity of trade financing. The regulatory environment in which financial institutions operate is continually evolving and becoming more complicated. It increases the openness of the financial system, which lowers the likelihood of fraud and corruption. It’s feasible to do rid of complicated workflows thanks to blockchain’s ability to track every transaction. The system ensures data security without involving humans. Already, initiatives on the blockchain are being developed to facilitate the issuance of credit and the identification of clients.

Alessandro Bianchi says that investors may now register accounts with digital advisers and make their own financial choices thanks to the rise of companies in the financial services business.

“It’s inevitable that the tie between blockchain and fin-tech will get stronger as the two sectors become more prominent in the global economy”

Alessandro Bianchi added that that consumer may benefit from this innovation. For those investors who want to avoid hefty fees, blockchain presents a solution for customers to benefit from conventional financial services at a reduced price point. Scammers are flourishing in the digital world, which is taking advantage of the growing online presence of customers. This might be alleviated with the use of blockchain technology. In contrast to conventional banking, payments and money transfers on the blockchain are quicker and more traceable. Information may be intercepted as it travels via several financial intermediaries, increasing the likelihood of fraud. In order to close this oversight gap, cryptographic techniques built within the blockchain may be used.

About Chatsworth Securities LLC
Chatsworth Securities LLC is an investment banking firm that has been providing financial advisory services to corporations and entrepreneurs since 1996. Chatsworth advises on both domestic and international M&A transactions, fundraising and capital raises for large and small companies around the globe. Chatsworth has participated as an underwriter in over six hundred public offerings and has raised over $5 billion for traditional and alternative money managers and their funds.

Chatsworth Grows in European Sport Industry

New York February 25, 2022

Chatsworth Securities LLC has been engaged by a first division soccer European team under the supervision of Alessandro Bianchi, Managing Director at Chatsworth. “American money continues to flow into European soccer,” said Alessandro Bianchi.

Just in 2021 we saw a wide range of deals into European Soccer :

777Partners a Miami-based fund acquired fully ownership of Genoa, Italy’s oldest soccer club,  the company also owns a stake in Sevilla FC, one of Spain’s most prestigious and successful soccer clubs, as well as the London Lions. The Chicago finance and technology company Peak6 has taken a stake in the Premier League’s Wolverhampton Wanderers. PEAK6 is not new to European soccer, the firm has previously owned stakes in AS Roma and AFC Bournemouth. Ares Corporation invested U$ 216.9 million in exchange for 34% of Atletico Madrid in Spain, Ares disclosed that its funds have already invested nearly U$1 billion in sports and related media. The L.A. based fund Oaktree capital has acquired a 31% equity interest in Inter Milan for U$336 million. The New York investment fund MSD Capital has bought the Italian team La Spezia early in 2021, also the Michael Dell management fund owns two other teams in Europe: Sonderjyske Fodbold, which plays in the Danish top flight and Casa Pia AC in Portugal.

The push by US investment firms in the long run is to bet on the DIGITALIZATION of the sport as consumers behavior shift, something that has been accelerated by Covid-19. With fewer fans in the stadiums, soccer teams are looking at DIGITAL content to keep that connection with consumers. Through investment firms and oversea capital, the European teams hope to improve their media production to engage the global audience.

About Chatsworth Securities LLC
Chatsworth Securities LLC is an investment banking firm that has been providing financial advisory services to corporations and entrepreneurs since 1996. Chatsworth advises on both domestic and international M&A transactions, fundraising and capital raises for large and small companies around the globe. Chatsworth has participated as an underwriter in over six hundred public offerings and has raised over $5 billion for traditional and alternative money managers and their funds.

For further information:

Alessandro Bianchi
Managing Director
Chatsworth Securities LLC
abianchi@chatsworthgroup.com