Borderless Capital, a Web3-focused investment firm, announced Tuesday that it will acquire CTF Capital, a quantitative trading and asset management firm headquartered in Miami with technical and operational teams in Latin America. Financial details of the transaction were not disclosed. This agreement marks Borderless' first acquisition since its founding in 2018.
With this acquisition, Borderless Capital adds AI-powered quantitative trading expertise to its business. The deal also marks the company's geographic expansion into Latin America, with the company set to open a new office in Argentina, one of Web3's main centers of innovation, in the second quarter of this year.
CTF Capital has built trading models and capabilities that leverage artificial intelligence (AI) and machine learning (ML) strategy engines. Automated Market Making (AMM), a decentralized exchange that uses algorithms to trade digital assets. Maximum Extractable Value (MEV) Strategy. The MEV strategy allows block miners to profit from transactional order operations in decentralized finance. In the fast-moving world of Web3, where tokens and blockchains can rise and fall rapidly, being able to trade with agility is important for investment firms focused on cryptocurrencies.
After the merger with CTF Capital, Borderless will have over $500 million in assets under management (AUM). Borderless manages six funds, including a $50 million cross-chain fund and an Algorand fund. All existing funds managed by CTF Capital will be combined into the borderless multi-strategy fund V LP., which was launched last year and has $100 million in assets under management today. The multi-strategy fund is an “open-ended hedge fund focused on generating maximum risk-adjusted returns for investors in both liquid and soon-to-be liquid digital assets.”
CTF's entire team, 11 staff members including two partners, will join Borderless Capital, increasing the team's total headcount to approximately 40 people post-acquisition.
“From a technology perspective, the team at CTF Capital has spent over three years developing a blockchain investment platform powered by machine learning and AI, as well as developing new innovative and emerging on-chain opportunities, such as participating in MEV. We see value in the on-chain market,” David Garcia, co-founder and managing partner of Borderless Capital, told TechCrunch.
In terms of financial capabilities, Borderless expects to acquire new limited partners (LPs) from Latin America through this acquisition and generate synergies. This will help Borderless establish itself as an investment company in the region and create new opportunities.
“Borderless already has significant exposure through several portfolio companies in the region.” [Latin America]. In addition to that, we have a huge list of investors and clients in Latin America, many of whom were part of CTF Capital Funds prior to the acquisition, and having opened local offices in the region. [Argentina]we will be able to provide them with better, more custom and direct services,” Garcia said.
Borderless Capital's portfolio companies include Securitize, an end-to-end platform for digital tokenized securities; Wormhole, a blockchain infrastructure company. Blockdaemon is one of Borderless's first unicorns and a blockchain infrastructure company. Helium Network is a distributed physical infrastructure network that provides wireless connectivity to IoT and mobile devices.