Grit Capital Partners’ Investment in Monark Markets
A new approach to unlocking the alts market
Revolutionizing a multi-trillion dollar market requires a rare combination of brilliance, ambition and obsession. The folks at Grit Capital Partners know it when we see it, because we’ve looked up the mountain of company building with that same gleam in our eyes.
When we met Ben Haber at Monark, we met a kindred soul. Ben and his co-founder Paul Davis became obsessed with the alts market while still in college. The opportunity they were chasing was clear:
Over the last ten years, the dollar volume of stock traded in private markets has matched or exceeded public market financing. The proceeds from Reg D offerings alone between 2021 and 2023 totalled $6.2 trillion, 23% more than the capital raised in registered offerings over the same period and a 86% increase over the proceeds from Reg D offerings sold during 2011- 20131.
As big as it is, the alts market has been hampered by a lack of liquidity and reach. To unlock and expand the world of alt investing, Monark operates an “Alts-as-a-Service” platform so that brokerage platforms can easily expand their existing offerings to include alts.
By abstracting away asset sourcing, due diligence, regulatory support, and investor accreditation, Monark dramatically reduces the effort required to offer pre-IPO company stock, real estate, private credit and equity, art and collectables. To create liquidity, Monark aggregates demand across distribution partners, so more potential buyers and sellers can connect. And as a B2B platform, Monark doesn’t market offerings directly to individuals, so doesn’t compete with their distribution partners.
Paul and Ben have assembled a fantastic team of industry experts around them. They’ve been incredibly capital efficient, creatively financing acquisitions that have accelerated their progress. They’ve also negotiated the required regulatory approvals with speed and skill.
We’re honored to join with the Monark Markets team, as well as fellow investors Garuda Ventures, Forum Ventures, Night Capital, Niche Capital and K50 Ventures in tackling an enormous opportunity. To learn more, please read the official press release here.
1. https://www.slcg.com/files/research-papers/Reg_D_Offering.pdf