Capital without bordersan investment firm specializing in web3, announced on Tuesday that it is acquiring CTF Chapter, a Miami-based quantitative trading and asset management firm with technology and operations teams in Latin America. Financial details of the deal were not disclosed. The deal marks Borderless’ first acquisition since its inception in 2018.
With this acquisition, Borderless Capital will add AI quant trading expertise to its own business. The deal also marks the company’s geographic expansion in Latin America, with plans to set up a new office in Argentina, one of web3’s leading technology innovation hubs, in the second quarter of this year.
CTF Capital has built trading models and capabilities that leverage strategic artificial intelligence (AI) and machine learning (ML) engines. automated trading (AMM), a decentralized exchange that uses algorithms to trade digital assets. and maximum exportable value (MEV) strategies. The MEV strategy allows block miners to benefit from the manipulation of transaction orders in decentralized finance. In the fast-moving world of web3, where tokens and blockchains can rise and fall quickly, being able to transact easily is critical for any crypto-focused investment firm.
After combining 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 Algorand fund. All existing funds managed by CTF Capital will be merged into Borderless’ Multi-Strategy Fund V LP, launched last year with $100 million under management today. The multi-strategy fund is “a hedge fund that focuses on generating maximum risk-adjusted returns for investors in both liquid and soon-to-be-liquid digital assets.”
The entire CTF team, 11 staff members, including two partners, joined Borderless Capital, which increased its total team to nearly 40 employees following the acquisition.
“From a technology perspective, the CTF Capital team has been working for more than three years to develop its machine learning and AI-based blockchain investment platform, along with new innovative and emerging on-chain opportunities, such as participating in MEV or maximum export value markets in the chain,” David Garcia, co-founder and managing partner of Borderless Capital, told TechCrunch.
In terms of financial capacity, Borderless expects to make synergies through the acquisition, which brings in a new set of limited partners (LPs) from Latin America. It will help Borderless position the investment firm in the region and create new opportunities.
“Borderless already has significant exposure through several portfolio companies from this geography [Latin America]. In addition, we have a huge list of investors and clients from Latin America, many of whom were part of CTF Capital Funds before the acquisition, and opening a local office in the region [Argentina]we will be able to provide them with a better, more customized and immediate service,” Garcia said.
Borderless Capital’s portfolio companies include; Securitize, an end-to-end digital titles platform. Wormhole, a blockchain infrastructure company. Blockdaemon, one of the first unicorns of Borderless, a blockchain infrastructure company. and Sun Networka decentralized physical infrastructure network that provides wireless connectivity for IoT devices and mobile devices.
