This Whitepaper is not an offer of AKJ Tokens (as described below). This Whitepaper is for informative purposes and is made to or directed at only investment professionals. This Whitepaper is directed at persons having professional experience in matters relating to investments and that any investment or investment activity to which it relates is available only to such persons or will be engaged in only with such persons. Persons who do not have professional experience in matters relating to investments should not rely on it. There are in place proper systems and procedures to prevent recipients other than investment professionals engaging in the investment activity to which the Whitepaper relates.
The directors of AKJ Crypto plc (“Directors”) in relation to the information in the Whitepaper:
- believe it (excluding opinions, views and forecasts) is true;
- believe any opinions, views and forecasts contained in such information are honestly held; and
- do not deliberately omit any material matter of which they are aware which makes such information to their knowledge, inaccurate or misleading.
However, neither the Directors nor AKJ Crypto plc can guarantee the accuracy of statements made or conclusions reached in the Whitepaper. The Whitepaper does not constitute advice, nor a recommendation, by AKJ Crypto plc, its officers, directors, managers, employees, agents, advisors or consultants, or any other person, to any recipient of the Whitepaper. The Whitepaper may contain references to third party data and industry publications. However, there are no assurances as to the accuracy or completeness of such reproduced information. Although information and data reproduced in the Whitepaper is believed to have been obtained from reliable sources, neither the Directors nor AKJ Crypto plc independently verified any of the information or data from third party sources referred to in the Whitepaper or underlying assumptions on which such sources rely.
The Directors and AKJ Crypto plc make no promises of future performance or value with respect to its proposed business operations or the AKJ Token, including no promises of inherent value, no promises of payments, and no guarantees that AKJ Token will hold any value.
This document has been prepared on the basis that any offers for AKJ Tokens will be made pursuant to an exemption under the EU Prospectus Directive (e.g., to professional investors). AKJ Tokens will not be offered to the general public in any jurisdiction unless and until a prospectus is available. AKJ Tokens shall not be offered or sold, directly or indirectly, in any jurisdiction (a) where the offer or sale of AKJ Tokens is not permitted or authorised or (b) to any person who is not permitted to acquire or hold AKJ Tokens under the laws or regulations of such jurisdiction.
This page includes some of the relevant risks that need to be taken into account when considering investing in AKJ Token. This list is not comprehensive and independent legal advice should be sought if potential investors are unclear about any aspects of the offering.
- Security Token Offerings are new to the market and regulatory uncertainties exist at present– rules are still being finalised by regulators in many jurisdictions.
- Investors are unlikely at present to have full access to all regulatory protections in many jurisdictions
- AKJ Token gives indirect and diversified exposure to the crypto economy which has a history of extreme volatility and vulnerability to dramatic changes. Such effects can spill over to the value of AKJ Token.
- The Private Offering is taking place under an exemptions to the Prospectus legal requirements and instead of a regulated prospectus we offer a ‘White Paper’. Technical understanding is needed by investors to fully understand the AKJ Tokens’ characteristics and risks.
- The AKJ Crypto platform is in an early stage of development and will be exposed to a market with many early stage and experimental business models. As with early stage investments generally, the value of AKJ Token may be extremely volatile and vulnerable to dramatic changes.
- There is a chance of investors losing their entire stake.
AK Jensen Group Limited has launched the AKJ Crypto platform and AKJ Token, bringing the benefits of its award-winning hedge fund solution to funds trading digital assets.
AK Jensen Group Limited, founded in 2003, is owned by shareholders who, combined, have more than US$18 billion in assets under management. The Group serves institutional clients in 35 countries.
The AKJ Crypto platform offers
- a tier-one legal and regulatory solution for crypto hedge funds, with an infrastructure designed to offer a bridge to the traditional regulatory universe (AKJ Core)
- an institutional-grade portal for secure trading, settlement and storage, enabling hedge fund managers to manage crypto assets easily and efficiently (AKJ Port)
- a fund of funds investing with top fund managers, offering capital appreciation for Token holders, and seed capital to select managers on the platform (AKJ Digital Assets FoF)
- direct exposure for investors and fund managers to all levels of revenue growth and capital appreciation in the AKJ Crypto ecosystem (AKJ Token)
AKJ Token, designed for institutions and professional investors seeking managed exposure to crypto assets, will capture value on the platform and align the interests of all parties.
Token holders will participate in the appreciation of the fund of funds, the growth of the platform, and ongoing disruption of other financial services, by sharing 25% of net revenues.
The AKJ Crypto platform benefits from over US$30 million of development expense over the past several years. AKJ Crypto has already launched the platform, generated customer traction, and established a leadership position in the market. A fee discount and capital seeding mechanism incentivise fund manager commitment, assuring vigorous growth of the ecosystem and a secondary market for the Token.
AKJ Token is a transferable security sold under EU law.
AKJ Crypto comes from the team behind the AKJ Hedge Fund Platform, launched in 2012, and winner of the HFM European Services 'Best Hedge Fund Platform' Award in 2016 and 2017, and 'Best Hedge Fund Platform – Emerging funds' Award in 2018. Detailed management team biographies may be found below.
AKJ Crypto – The platform
We believe all securities, in time, will become digital. As regulation evolves and trading infrastructure improves in terms of security, performance, products and liquidity, new digital assets will emerge, and institutional capital will move in on an ever-increasing scale. AKJ Crypto intends to establish and consolidate its position as the go-to platform where hedge fund managers and institutional investors interface. Funds will enjoy institutional quality servicing and access to crypto markets. Token holders will gain risk-mitigated, highly diversified access to the rapidly ascending cryptoeconomy.
In time, AKJ Crypto intends to leverage its first phase of growth to progressively disrupt other sectors of the financial marketplace.
In two main evolutionary stages, AKJ Crypto will:
- capitalise on its status as the crypto hedge fund platform, as traditional hedge funds evolve to become digital hedge funds
- leverage that position to establish an equivalent status in the overall financial industry, as the traditional financial marketplace evolves to become a digital financial marketplace.
AKJ Token offers a stake in the digital disruption that is coming to the financial industry, and the immense opportunities it offers.
The AKJ Crypto platform (also referred to herein as ‘AKJ Crypto‘) comprises:
AKJ Crypto plc – a wholly owned AK Jensen Group Limited company, issuer of AKJ Token and platform developer, responsible for regulatory compliance, licensing, coordination with other ecosystem entities, and provider partnerships.
AKJ Token – the platform token, offering a share of platform revenues and fund of funds appreciation. The Token aligns the interests of all parties – fund managers, investors, operators, developers and providers – and enables participation in all future value from AKJ Crypto platform growth and broader financial market disruption. AKJ Token is a transferable security sold under EU law to professional investors, with future public sales via prospectus.
Discounted fees for funds holding at least 2% of their AuM in AKJ Token incentivises holdings, linking Token value to platform growth and supporting the development of a secondary market with active buyers.
With live funds on the platform, the Token will pay a shareout1 beginning in Q1 2019, subject to applicable laws and procedures.
AKJ Core – the legal and regulatory infrastructure for crypto hedge funds. It meets all the needs of a manager setting up and running a hedge fund in today’s regulatory environment, with tier-one providers, allowing them to focus on investors and performance. All day-to-day administration is handled by AK Jensen Investment Management Limited and AK Jensen Limited, both regulated by the UK’s FCA.
Funds on the platform are registered or licensed either in the Cayman Islands or in Malta (EU).
AKJ Digital Assets FoF – the platform fund of funds (also referred to herein as the ‘FoF‘) which primarily invests in top performing funds on the AKJ Crypto platform. All free cash on the platform will be held in the FoF, enabled by the Token offering. For AKJ Token holders it offers access to capital appreciation from managed exposure to digital assets, generated by top managers. Since the FoF is regulated and investable for traditional investors, it provides a bridge between the fiat and crypto asset universes.
The FoF also operates the platform’s Capital Allocation Programs, offering seed and accelerator capital, helping attract top, emerging managers to the platform. Net revenues from the programs, generated by a stake in participating funds’ management and performance fees, are shared with Token holders.
AKJ Digital Assets FoF is domiciled in Malta as a PLC and licensed as a collective investment scheme (Malta FSA).
AKJ Port – an institutional-quality portal for trading, settlement and storage, enables hedge funds to manage and trade in digital assets. The portal provides a unified interface with integration to multiple exchanges, and access to tier-one custody services and wallets. AKJ Port offers human support and enables extended capabilities and customisations to its core functionality, empowering sophisticated hedge fund clients.
With scale, AKJ intends to leverage the platform and its installed client base and evolve AKJ Port to include an exchange function with strategic partners, aiming to reduce, if not eliminate, trading costs and capture value through the Token, resulting from increased traffic and incremental buyers.
Together, the AKJ Token, fund of funds, legal and regulatory infrastructure and trading portal provide a tier-one, turnkey digital platform for hedge funds and professional investors.
AKJ Token – The platform token
AKJ Crypto plc is issuing AKJ Token: a vehicle for capturing the value on the AKJ Crypto platform and aligning the interests of all parties by enabling sharing of a portion of its net revenues2.
Revenue sharing from infrastructure fees (AKJ Core), trading, system, and storage fees (AKJ Port) and capital allocation program fees (AKJ Digital Assets FoF), are payable to Token holders’ wallets on a quarterly basis, paid in ETH.
For hedge fund managers, Token ownership allows a fee discount and access to the Capital Allocation Programs, offering seed and accelerator capital to fund managers.
AKJ Token is a smart contract on the Ethereum blockchain, following the ERC20 standard.
How do tokens improve the enterprise model?
The mainstream dialogue around cryptocurrency typically focuses on topics such as decentralisation, immutability and transparency. While these are important technical considerations, on their own they do not harness the power of cryptocurrency, or of a token-based business model. Rather, the real potential lies in the ability of the enterprise to use its crypto assets to fundamentally reorganise itself, including how it delivers value – directly and proportionally – to a wide array of stakeholders that engage with the organisation in many different ways.
AKJ Token is multi-faceted, simultaneously acting as:
- a profit-sharing mechanism for revenues on the platform
- a mechanism for diversified crypto exposure (through the FoF)
- a seeding program enabler (FoF)
- a store of value
- a tool to attract top industry talent
- an incentive mechanism
- a means of payment
Over time, token-based securities will drive the reinvention of business enterprises, allowing new ways to design organisations and incentivise project contribution.
AKJ Token is the optimal enabler for a hedge fund platform, allowing AKJ Crypto to channel growth in the most efficient way possible.
Why invest in AKJ Token?
- Provides highly diversified exposure to the cryptoeconomy, without requiring depth of knowledge in crypto or blockchain
- Pays 25% of net revenues from the AKJ Crypto platform business in perpetuity
- Token value benefits from top-tier crypto hedge fund managers that are drawn to the AKJ Crypto platform for both its investment and operational attributes
- Offers participation in the fund appreciation of a specialist-managed crypto fund of funds
- Offers a platform that is already complete, in market, and acquiring customers
- Provides the comfort of a well-established global brand, the regulatory protection of the capital markets, and the track record of a mature, prize-winning traditional fund management platform.
Hedge fund managers will also invest in AKJ Token for its utilities: fee discounts and access to the platform’s Capital Allocation Programs (see ‘Additional Token Utilities’).
AKJ Crypto, unlike most token projects, has already established real substance, and will be in a position to begin sharing revenues with Token holders in Q1 2019 with capacity being added rapidly thereafter. While other players in the market are in the concept or development stage, AKJ Crypto has already leveraged over US$30 million of investment since inception of the hedge fund platform.
AKJ Crypto aims to reduce, and ultimately eliminate, transaction costs for funds on the platform. A tier-one platform with top quality providers, at minimal costs, will steadily attract more institutions and larger fund managers, adding Token appreciation to the benefits accruing to holders.
The Token is expected to be listed on a security exchange following completion of Stage One (see ‘The Security Token Offerings’).
Token holders will thus gain risk-mitigated – highly diversified, vertically integrated – access to the rapidly ascending cryptoeconomy, with a partner that has a strong track record of market leadership, clients in 35 countries, and with shareholders who combined have more than US$18 billion in AuM.
AKJ Token is a transferable security sold under EU law to professional investors only.
Valuation and revenue sharing
Amounts payable to AKJ Token holders will depend on:
- Revenue sources
- Platform margins
- AuM of hedge funds on the platform
- AuM and appreciation of AKJ Digital Assets FoF
AKJ Token holders will share in 25% of net revenues paid to AKJ Crypto plc from all sources, including but not limited to:
Infrastructure and trading
- Annual infrastructure and regulatory fees (AKJ Core)
- Transaction, storage, and system fees (AKJ Port)
- Capital appreciation (AKJ Digital Assets FoF)
- Performance fees from non-Token investors (AKJ Digital Assets FoF)
- Management fees from non-Token investors (AKJ Digital Assets FoF)
- Capital Allocation Program fees (AKJ Digital Assets FoF)
Potential future sources of revenue
As with most radical changes, industry, scale and new technologies will bring new monetisation opportunities, many not currently standard or even imagined.
AKJ Crypto’s primary focus over the initial five-year period will be on the hedge fund industry, and on establishing itself as the digital hedge fund platform. AKJ Crypto will then leverage that position to establish an equivalent status in the overall financial marketplace, as it evolves to become a digital financial marketplace.
Having both a well-known, global brand and a track record of rapid growth with the traditional hedge fund management platform puts AKJ Crypto well ahead of the pack in the emerging cryptoeconomy. Incremental costs, staff and systems to service this new asset class are relatively small; yet leverage in negotiations with third parties is significant.
Although AKJ Crypto is purpose-built from the ground up to handle digital assets, the platform is, in regulatory, legal and support terms, a digitalised mirror-equivalent to the Group’s traditional AKJ Hedge Fund Platform. With institutions moving into the space, we expect margins for crypto hedge funds to gradually compress during the first period (<5 years).
In the second period (>5 years), AKJ Crypto aims to disrupt the transaction side of hedge funds, removing intermediaries, driving pricing down towards zero while increasing revenues from the FoF and market operations, and capturing all resultant value through appreciation of AKJ Token.
AuM of hedge funds on the platform
AKJ Crypto aims to become the leading platform for all hedge funds within two decades.
We believe traditional assets will collapse onto distributed ledgers over the next decade. If so, hedge funds on our traditional AKJ Hedge Fund Platform will collapse onto the AKJ Crypto platform, with the resultant revenues shared between Token holders.
Fund managers develop track records over their initial 12-18 months. Consequently we expect to see fund level growth – the driver of overall platform growth – begin to kick in during years two and three.
Conservatively, AKJ Crypto plc expects AuM of US$2bn on the AKJ Crypto platform by 2024, from emerging crypto funds alone (i.e. prior to the merger with the traditional platform).
We anticipate a rapid rise from $2bn AuM in 2024, with AuM levels reaching the tens of billions within a decade, from new funds, fund growth, and the collapse of AKJ’s traditional funds onto the AKJ Crypto platform.
AuM of, and appreciation revenues from, AKJ Digital Assets FoF
20% of Tokens will be sold in the Stage Two public offering (at $200 million AuM), with Stage Three to follow (at $2bn AuM, see ‘The Security Token Offerings’, p20).
Proceeds from these secondary offerings will be invested in the AKJ Digital Assets FoF to serve as seed and accelerator capital for the next generation fund managers on the platform.
Any capital appreciation subsequently generated by the FoF, and all net revenues from the Capital Allocation Programs, will be shared 25% with Token holders, subject to applicable laws.
After sharing revenues from FoF capital appreciation and the Capital Allocation Programs (25%), the remaining proceeds (75%) will be reinvested in the FoF. The reinvestment will multiply the value as capital for fund managers to the benefit of Token holders, allowing the ecosystem’s quality as counterparty to grow in parallel with AuM growth, pending the next shareout to Token holders.
We expect revenues from market operations to match and, after the second and third offerings, greatly exceed payments from infrastructure and trading, as the assets on the platform grow.
Additional Token utilities
To attract top, emerging fund managers and to reduce token velocity, AKJ Crypto plc will incentivise fund managers to buy and hold the Token:
- An optional scheme will offer fund managers a 33% discount on AKJ Core’s fixed annual fees, subject to their holding at least 2% of NAV in AKJ Tokens at the start of each pricing period.
- In addition, holding AKJ Token will give fund managers access to the platform’s merit-based Capital Allocation Programs, offering seed and accelerator capital.
- AKJ Crypto plc is focused on building substance. Experienced managers who contribute more than €200,000 in the offering will be eligible to establish a standard crypto hedge fund with zero set up costs, by 31 December 2020. (Restrictions may apply, depending on merit and the country of residence of the participant and fund investors).
AKJ Core – the legal & regulatory foundation
Hedge funds trading crypto assets are generally offered poorly structured, inflexible, and high cost infrastructure platforms, with low-end providers. AKJ Core, a global service component on the AKJ Crypto platform using the award winning legal and regulatory infrastructure of AKJ Group companies, allows start-up managers to initiate their business as if they were already in high demand, on a flexible and fully regulated platform, serviced by tier-one providers. This turnkey solution lets the fund manager focus on performance and investors, leaving all day-to-day administration to AKJ.
Launched in 2012, the AKJ Hedge Fund Platform won the HFM European Services 'Best Hedge Fund Platform' Award in 2016 and 2017, and 'Best Hedge Fund Platform – Emerging funds' Award in 2018. Within the platform, all legal agreements dovetail into a fully integrated legal and regulatory structure, with all regulatory dealings simplified and processed within a hub environment by AKJ. The fund manager is then able to manage funds under the supervision of AKJ’s local branches throughout the EEA area.
Ultimately, AKJ Core delivers the fund manager three major benefits:
- With an appropriate legal and regulatory umbrella – structured, managed and maintained by in-house specialists – AKJ Crypto funds are better positioned to attract sophisticated investors. As a fund grows, the structure is fully flexible and adaptable to meet the needs of institutional investors
- The platform approach results in low formation and ongoing costs for a tier-one fund structure. Infrastructure costs are fully transparent, all-inclusive, and allow a small scope fund manager to start a tier-one hedge fund
- Merit-based Capital Allocation Programs, offering seed and accelerator capital, for qualifying fund managers on the platform, whereby AKJ Digital Assets FoF will invest in best in class talent among emerging crypto fund managers
The AKJ Crypto platform offers fund managers a 3-step fund development channel:
Step 1: Initiate fund development with a managed account under AKJ Port to test the investment strategy and hone the trading systems while negotiating investor commitments.
Step 2: With a finessed strategy and sufficient assets, wrap a fully regulated Small Scope (i.e. sub €100m AuM) infrastructure around the trading account and convert to a hedge fund. Aim to qualify for the Seed Capital Program.
Step 3: With a sellable track record post-18 months, add necessary components onto the dovetailing AKJ Core infrastructure, upgrade to an AIFMD Full Scope (subject to EU law) with no disruption, and gain regulatory marketing rights throughout the EEA3. Aim to qualify for the Accelerator Capital Program.
In short, the AKJ Crypto assembly line is seamless, non-disruptive, tier-one and consistent from initiation.
We believe many regulators and providers understand that ledger technologies and digital assets have the potential to reduce costs and deliver rapid innovation, transparency and fairer markets, and we are working with them to help determine appropriate levels of regulatory oversight and third-party services. The graphics below shows the legal and regulatory infrastructure of a default crypto fund:
Hedge funds on the AKJ Crypto platform are domiciled in Cayman (offshore) and Malta (EU onshore). The fund structure differs from one fund to another and will evolve as the industry and regulations mature.
Net revenues shared with Token holders from AKJ Core include annual infrastructure and regulatory fees, currently ranging from 4 – 76 basis points depending on a crypto fund’s Net Asset Value.
AKJ Core net revenues are shared 25% with Token holders, on a quarterly basis.
AKJ Port – the trading infrastructure
Since 2003, AK Jensen Group Limited has offered an all-institutional trading infrastructure to banks, brokerages and hedge funds. Its service and systems are used by institutional clients in 35 countries for order routing, connectivity and execution, and recognised as one of the most rapid, efficient and stable systems in the industry. The system is open and scalable, independent and flexible, and its back-end can be customised to deliver a single consolidated report in a client’s preferred format.
AKJ Port is the portal for trading and management of digital assets, built in line with the ecosystem’s institutional systems. AKJ Port provides multi-exchange connectivity for trading and access to custody services and external wallets.
The portal combines a range of services and providers on a modular basis. Highly adaptable, it has the flexibility to serve a wide variety of trading strategies, with the ability to accommodate extensive customisations to meet the needs of institutions and sophisticated hedge fund clients.
AKJ Port integrates with the ecosystem’s proprietary back office system for data management and risk and data reporting.
Development and design of AKJ Port will evolve over two main periods:
<5 years: Ongoing development progress aligned with the evolution of the cryptoeconomy and the capacity of the blockchain and provider systems. AKJ Port plugs in to other protocols using existing systems, exchanges and providers, enabling its hedge funds to manage and invest in digital assets through the most secure and efficient systems in the market at any time.
To minimise risk, AKJ Crypto plc does not act as counterparty to transactions.
Revenues from AKJ Port to be shared with AKJ Token holders in the first period include transaction, storage, system, financing and conversion fees.
>5 years: When capacity of the cryptoeconomy allows, AKJ Crypto intends to leverage its scale, liquidity and volume to remove intermediaries, virtually eliminate fees, and capture value through the Token and revenues from the FoF, rather than trading.
Throughout its growth and expansion, AKJ Crypto will provide fund managers with human trade, operational, and system support, including communication with third-party marketplaces, to ensure security in critical operations.
AKJ Port launched in January 2019.
AKJ Port net revenues are shared 25% with Token holders, on a quarterly basis.
AKJ Digital Assets FoF – the fund of funds
AK Jensen Investment Management Limited, as AIFM4, launched AKJ Digital Assets FoF in January 2019. The FoF acts as:
- a fund of funds, whose appreciation generates revenues for sharing with Token holders
- the source for the Capital Allocation Programs offering seed and accelerator capital for fund managers on the platform
The fund of funds
AKJ Digital Assets FoF primarily invests in the top performing funds on the AKJ Crypto platform.
For Token holders, the FoF offers a number of significant benefits:
- Capital appreciation from managed exposure to top performing hedge funds trading digital assets, much like investing directly in a fund
- Diversification and aggregation, mitigating the risks and volatility of crypto trading, and the pitfalls of immature and unstable trading infrastructures.
For non-Token holders, the EEA onshore regulation for the FoF (Malta FSA) and the investment manager (UK FCA), enables the FoF to be held by any traditional institution, bridging fiat and crypto management.
FoF management and performance fees are 0.5% and 5% respectively.
AKJ Digital Assets FoF appreciation is collected annually by AKJ Crypto plc, with 25% shared between Token holders in equal, quarterly instalments over the subsequent four quarters.
AKJ Digital Assets FoF’s Capital Allocation Programs
Available cash on AKJ Crypto plc’s balance sheet is held in the FoF to provide seed and accelerator capital for fund managers on the platform.
The merit-based and strategy-aligned Capital Allocation Programs are designed to attract top, emerging fund managers onto the platform, with pre-negotiated fees. AKJ Crypto plc receives a percentage of management and performance fees from each participating fund.
For Token holders, the Capital Allocation Programs offer a mechanism for participating in up to 50% of the management and performance fees of selected funds on the platform (in exchange for seed capital), as well as up to a 50% reduction on the fees paid by the FoF to developed funds (in exchange for accelerator capital).
Net revenues from the Capital Allocation Programs are shared 25% with Token holders, on a quarterly basis.
AKJ Token – The offering
AKJ Crypto will conduct a Security Token Offering (STO) in three stages, to raise funds in concert with the growth of the platform. Stage one is an offering to Professional Investors (the ‘Private Offering’). The intention is to subsequently conduct two public offerings, to be initiated at set milestones in assets under management. Public sales will be in compliance with EU prospectus legislation and subject to regulatory approval.
AKJ Token will be allocated as follows:
- Stage one: 30%
- AKJ Crypto plc: 20%
- Development and reward program: 10%
- Stage two: 20%
- Stage three: 20%
In the event that not all Tokens in an offering are sold, any surplus Tokens will be added to the allocation for the subsequent stage.
Note that Tokens held in reserve for future offerings and Tokens reserved for development and reward programs will not take part in the shareout until distributed.
Further, to the benefit of early investors and to ensure that AKJ Crypto plc is rewarded only after delivering next-level substance, Tokens held by AKJ Crypto plc will not participate in the shareout until Stage Two ($200 million in AuM).
To aid rapid, sustainable growth of the ecosystem, 10% of issued tokens will be set aside for a Development and Reward Program including incentives to attract key management and other expertise, support for relationships with strategic partners (token swaps), and other measures which the Board considers beneficial to the ecosystem and Token holders.
Maximum number of Tokens to be issued in total: 1,000,000,000
Price and ICO Procedure
This document describes the basic functionality of the platform and its components but is not an offering and does not contain any pricing information or details of the STO procedure. Any public offering of AKJ Tokens is intended to be made available as a prospectus complying with EU directives.
AKJ Crypto plc will never post any fundraising address on social media or in blog posts. There will be only one official website (https://www.akjtoken.com), where the subscription procedure is described.
Investors need to beware of phishing attempts and other scams. One in particular - akj-crypto.com - has been referred to the French regulator, The Autorite des Marches Financiers (AMF).
Status as of 31 December 2018
The AKJ ecosystem reached profitability in 2017. As of 31 December 2018, AKJ Crypto plc had received commitments for $13 million in the Token offering. Of these proceeds, $6 million are being used to fully reorganise and absorb costs related to the addition of AKJ Crypto to the ecosystem. This allows incremental proceeds from Token sales to be deployed into the AKJ Digital Assets FoF. As of 31 December 2018, 8% of Development and Reward Program Tokens had been allocated.
Use of proceeds
AKJ Crypto plc will use the proceeds from the offerings for FoF investments, business development and related expenses, its working capital, at the discretion of the Board and for the long-term benefit of Token holders.
Management team and development prowess
Anders Kvamme Jensen: Founder and Chairman. Anders works closely with the subsidiaries on both strategic and financial matters. He has been instrumental in attracting top global talent to the board, which since its inception has developed strategies to enable the company to deliver continuous growth. Anders is a director of AK Jensen Group Limited and the wholly owned subsidiaries of the company.
Anders holds a degree in business administration and finance from the University of Denver in 1992, and subsequently dropped out as a special student from Harvard University to establish the US FINRA brokerage AK Jensen Inc. in 1995.
In 1998, in partnership with Leif H. Olsen, former Chief Economist of Citibank, he founded the AKJ Hedge Fund. In 2002, he established the UK FCA brokerage AK Jensen Limited, and in 2003 formed the group company AK Jensen Group Limited.
Neal Mitra: CEO. Neal joined AKJ Crypto plc in 2018 as Chief Administration Officer and was promoted to CEO in 2019.
Prior to AKJ, he was Managing Director at Argon Group, the investment bank focused on digital assets and the token-based capital markets. His previous experience includes roles in venture capital and private equity. Neal began his career as a management consultant with McKinsey & Co and Monitor Company, working in the US, Europe and Southeast Asia.
Neal holds S.B. and S.M. degrees from MIT and an MBA degree from Stanford University Graduate School of Business.
Tom Mackay: AKJ Group General Counsel. Tom was Head of Legal Department of the London Stock Exchange at a time when it also carried out much of the regulatory function now carried out by the FCA. He is a corporate/commercial lawyer with considerable international and financial services experience. Tom has over 40 years’ experience as a Solicitor mainly as a partner in international law firms in the City and was also Head of Legal Department at 3i plc at a time when it grew to be the biggest VC in Europe. For many years he was a partner in Curtis, an international law firm headquartered in New York, with 14 offices in 10 jurisdictions, where he often acted for government entities around the world.
Tom has acted as the main legal adviser to AK Jensen Group Limited for more than 16 years. He became the General Counsel at AK Jensen Group Limited with the introduction of the AKJ Hedge Fund Platform in 2012.
As well as having a law degree and an MBA, Tom is also a Certified Hedge Fund Professional.
Oskar Åslund: Head of Token Operations and Business Development. Oskar was co-founder of Blockchangers AS, a leading blockchain firm in Oslo, and is a public speaker on the technology. He joined AK Jensen Group Limited in 2017 as a strategic developer of the AKJ Crypto Hedge Fund Platform and Chief Operating Officer for AKJ Crypto plc. In 2018 Oskar was promoted to his current position as Head of Business Development.
Oskar holds a master’s degree in Innovation Studies from the University of Oslo, with a dissertation on the use of blockchain technology in the financial sector.
Sean Fitzgerald: Managing Director, AKJ Core. Sean joined AK Jensen Limited in 2004, became Head of Business Development in 2005 and CEO in 2006. He relinquished his role as CEO of AK Jensen Limited in 2017, to focus on leading the asset management business as CEO of AK Jensen Investment Management, a position he has been holding since 2014.
Prior to joining AKJ, Sean was VP of Portfolio Trading Sales at Bear Stearns International and Instinet UK’s Head of Portfolio Trading Sales, where he marketed portfolio trading and electronic connectivity to institutions, hedge funds and brokers.
Sean holds an MBA in Finance from Columbia Business School and a BS in Marketing from Rutgers College. He is a member of CFA Institute and CFA UK and is a CFA charterholder.
Andrei Amaritei: CTO. Andrei joined AK Jensen Group Limited in 2007 as Head of Systems Development and was appointed Chief Technology Officer of AKJ Crypto in 2018.
Prior to AK Jensen Group Limited, Andrei worked for CSO Lanifex GmbH, the Austrian Information Security Management company that delivered complex security solutions to large institutional clients.
Andrei holds a Bachelor Degree in Computer Science from the University of Bucharest.
Sher Malhi: CFO. Sher joined AK Jensen in 2018 as the group wide CFO and serves as strategic partner to the group CEO.
Prior to his appointment with AK Jensen, Sher has worked for several years with KPMG across various offices in Europe where his clients included mid to large-scale multinational companies. Sher brings with him a wealth of experience, having worked with leading industry clients in the hedge fund and information technology space, and has divided his time between audit and advisory engagements.
Sher is a Chartered Accountant and a member of Chartered Accountants Ireland as well as the Institute of Chartered Accountants England & Wales. He holds a master’s degree in management information systems from the London School of Economics (LSE).
Traditional AKJ Hedge Fund Platform team members: 70+
Together the team signed nearly one new fund each month from 2012 until 31 December 2018:
Launched the AKJ Hedge Fund Platform, onboarding and serving hedge funds as an assembly line.
Won the first HFM European Services 'Best Hedge Fund Platform' award.
Initiated developments of AKJ Port, a gateway to multiple crypto exchanges with integration to custodians, using the ecosystem’s systems and experience.
Reorganised the traditional AKJ Hedge Fund Platform’s legal and regulatory architecture to accommodate digital assets, as AKJ Core.
Won the second HFM European Services 'Best Hedge Fund Platform' award.
Sign the first pilot fund on the Cayman regulatory AKJ Core.
Sign the first pilot fund on the Malta regulatory AKJ Core.
Establish AKJ Crypto plc as a token issuing company, and platform administrator.
Won the third HFM European Services award 'Best Hedge Fund Platform – Emerging Funds'.
Completed the private presale, reaching minimum signed commitments to cover development costs whilst developing substance, allowing incremental funds raised in the Stage One offering to be deployed into the FoF.
Launched the AKJ Digital Assets FoF and its Capital Allocation Programs offering seed and accelerator capital to qualifying crypto funds on the platform.
With the initial live hedge funds, launch AKJ Port trading portal.
Launched Stage One of the Security Token Offering.
At $200m AuM
With funds managing $200m on AKJ Crypto, conduct Stage Two, the secondary public offering under a prospectus, to assist a ramp to $2bn in AuM. Raised capital will be held in AKJ Digital Assets FoF.
With strategic partners, leverage the platform and its installed client base and evolve AKJ Port to include an exchange function.
At $2bn AuM
Conduct Stage Three of the now public security token offering, selling the remaining 20% of tokens to fuel the next stage of platform growth (from $2bn to $20bn+ AuM), with raised capital to be held in AKJ Digital Assets FoF.
Collapse AKJ Traditional Hedge Funds onto the AKJ Crypto platform, and consolidate as a single platform, for aggregation power for clients and to the benefit of AKJ Token holders.
Leverage the position as the digital hedge fund platform to establish an equivalent status in the overall financial marketplace, as it evolves to become a digital financial marketplace.
The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework for alternative investment fund managers (AIFMs), including managers of hedge funds, private equity firms and investment trusts.
Fiat money is a currency established as money by government regulation. USD, EUR, GBP and other similar currencies are fiat currencies.
Currently, access to passporting marketing rights throughout the EEA is effectively subject to Brussels agreeing a custody solution to holding crypto assets. There is a lot of pressure on the regulators to agree a way forward, and AKJ Crypto plc are reasonably confident that a solution will be announced within the next 12 months. Pending such a solution, funds investing directly into crypto assets managed by an EU investment manager can only market through the National Private Placement Regimes of the individual member states and must not exceed €100m assets under management. This limitation does not apply to AKJ Crypto FoF, as it invests in crypto assets indirectly, not directly.
During development of AKJ Core, AKJ Digital Assets FoF subscriptions will be distributed to non-AKJ funds with exposure to the cryptoeconomy, such as listed crypto ETFs.
Net revenues derived from all sources of AKJ revenues, including prime brokerage income, based on the last full fiscal year (2017).
Preqin Hedge Fund Manager Report, as of 31 December 2017
Net transaction revenues represents the difference between transaction fees paid by customers less direct costs associated with the transaction.