FAQs
We created this space to answer the most common questions about our platform and help you better understand how we connect asset managers and financial advisors.
This FAQ is for informational purposes only and does not constitute an offer, recommendation, or commercial commitment by LYNK Markets.
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How can clients gain exposure to higher-yielding assets, like private credit or real estate, with a lower ticket size?
High-yielding alternative assets—private credit, real estate and infrastructure—often require large commitments that exclude smaller investors. Fractionalization allows these exposures to be split into smaller units. ETNs and tokenized funds achieve this by issuing notes or digital tokens representing a share of the underlying pool. These structures allow investors to buy smaller amounts, benefit from periodic liquidity and receive transparent distributions. Advisors can therefore build diversified allocations to private credit or real estate using tickets sized appropriately for each client.
What solutions exist to invest in international funds without costly KYC/AML for each client?
When investing in several offshore funds, clients typically must complete separate KYC/AML procedures for each vehicle. Some structured products, such as ETNs or multi-strategy notes, pool multiple strategies under a single issuer and conduct KYC/AML at the issuer level. Once a client is onboarded with the issuer, they can allocate to different underlying exposures without repeating documentation. This approach reduces administrative friction and cost, shortens time to trade, and improves the client experience. Additionally, digital onboarding platforms can validate documents electronically and integrate with custodians to ensure compliance.
What are alternative investments, and why are they attractive versus traditional assets?
Alternative investments include asset classes beyond publicly traded equities and fixed income — private equity, venture capital, private credit, real estate, infrastructure, and hedge funds. Investors are drawn to them for a few reasons: the potential for higher returns as compensation for less liquidity, diversification from lower correlation with traditional markets, and, in some cases, a hedge against inflation through real-asset or contractual cash-flow exposure.
Which innovations are democratizing access to investments once exclusive to institutions?
Historically, private markets were reserved for institutional investors due to high minimums and limited liquidity. Several innovations are changing this landscape:
- Tokenization: converting ownership rights into digital tokens allows fractional ownership and programmable liquidity. By March 2025 the market for tokenized real-world assets had grown to about $17.9 billion with major asset managers launching tokenized funds.
- Fractionalization through ETNs and interval funds: packaging illiquid strategies into smaller tradable units makes them accessible to wealth clients.
- Digital marketplaces: online platforms aggregate alternative products, standardize due diligence and enable direct subscriptions from advisors.
- Centralized KYC/AML: onboarding investors once for multiple products reduces friction and cost.
These developments lower barriers to entry and provide advisors with tools to offer institutional-grade strategies to a wider range of clients.
Which key metrics should I evaluate to measure risk and liquidity in structured products?
Structured products vary widely in their risk/return dynamics. A systematic framework helps advisors compare them:
- Volatility and drawdown: measure the variability and worst declines of returns, indicating market risk.
- Duration and convexity: for fixed-income-like structures, these metrics indicate sensitivity to interest-rate changes.
- Collateral and credit quality: understand what assets back the note and the creditworthiness of the issuer.
- Liquidity windows: identify how often investors can redeem or trade the product and any notice periods.
- Triggers and payment waterfalls: examine performance triggers (e.g., knock-in/knock-out levels) and the order in which cash flows are distributed in different scenarios.
By evaluating these factors, advisors can compare structured products on a like-for-like basis and select those that align with client objectives.
Which digital solutions simplify the management, analytics and reporting of alternatives portfolios?
Managing a portfolio of alternative investments involves tracking cash flows, performance, risk metrics and compliance reporting across multiple vehicles. Digital platforms now integrate data from administrators, custodians and managers to provide consolidated dashboards. They offer analytics tools that calculate IRRs, volatility, correlations and stress-testing. Automated reporting capabilities produce client statements, regulatory filings and performance updates. Some platforms include workflow tools for capital calls, distribution notices and document management. By adopting such solutions, advisors can scale their alternatives business without adding significant operational overhead and can provide clients with timely, transparent information.
How can I discover boutique managers with differentiated strategies for sophisticated clients?
Finding niche managers requires more than a Google search. Curated platforms dedicated to alternatives vet managers for track record, operational infrastructure and regulatory compliance. Advisors can search these marketplaces by asset class, strategy style, geography and risk metrics. Many platforms also provide quantitative analytics (returns, volatility, drawdown), qualitative assessments (team background, investment process) and independent due-diligence reports. Engaging with these resources helps advisors identify managers whose offerings align with clients’ objectives and risk tolerance. In addition, attending industry conferences and webinars hosted by these platforms can expose advisors to emerging managers and strategies.
Where can financial advisors find alternatives (private credit, real estate, hedge funds) in a single marketplace?
Advisors often face fragmented information when sourcing alternative investments. Specialized marketplaces now curate a range of private credit, real estate and hedge-fund strategies and present them in a single digital hub. These platforms provide comparable data (returns, risk metrics, fees), standardized due diligence packages and often allow advisors to subscribe directly through existing custodians. By using such a marketplace, advisors save time, can easily compare products and access managers that might otherwise be hard to find. Lynk Markets is an example of a platform that aggregates ETNs and other alternative vehicles, enabling advisors to diversify client portfolios efficiently.
How often is the Note’s value (NAV) calculated, and where can I see it?
Valuation frequency is set for each series based on the liquidity of the underlying strategy — daily, weekly, or monthly are all common. NAVs are published through recognized financial information platforms, including Bloomberg.
How does my client actually purchase a Note?
Through their existing brokerage account. You provide your broker with the Note’s ISIN, and the transaction is settled broker-to-broker on a delivery-versus-payment (DVP) basis through international clearing systems such as Euroclear or Clearstream — no direct subscription to LYNK or to the issuer is required.
How can I diversify clients’ portfolios with international products in a simple and regulated way?
Diversifying with international alternatives can be complicated when each country has distinct regulatory and tax regimes. By selecting vehicles that are already registered in recognized financial centers and carry a global ISIN, advisors can give clients exposure to strategies in different regions without having to open foreign accounts or repeat compliance checks. ETNs, for example, are issued under a single legal framework, undergo independent audits and are overseen by trustees. They offer disclosure documents and performance reporting in English, and because they settle through Euroclear/Clearstream, they can be bought from existing custodians. This allows advisors to add international credit, real estate or hedge-fund exposures in a manner that is simple, regulated and scalable.
What advantages do ETNs offer versus investing directly in offshore funds (costs, minimums, liquidity)?
Investing directly in an offshore fund often means meeting high minimum subscription amounts (sometimes millions of dollars), completing extensive KYC/AML paperwork and committing to multi-year lock-ups with redemption gates. An ETN linked to the same strategy packages the exposure into a tradable security. This reduces minimum investment sizes to levels suitable for advisors’ clients, because the note can be fractionalized. Total costs are competitive because administrative expenses are spread across many investors, and trading on a secondary market (or via a transfer agent) allows T+2 settlement and periodic liquidity. Advisors can scale allocations gradually rather than in a single large ticket, improving portfolio construction flexibility.
Does my client need to go through a separate onboarding or KYC process with LYNK?
No. Because the Notes are acquired like any other tradable security through your client’s existing brokerage account, KYC, AML, and sanctions screening are handled by your regulated broker or custodian as part of their normal account procedures.
How do rebates and trailer fees work, and how can they impact AUM growth?
In the distribution of investment products, advisers and distributors often receive compensation via rebates (upfront or ongoing) and trailer fees (continuing payments based on assets under management). These payments are typically calculated as a few basis points on the notional invested and are designed to compensate the advisor for marketing, client servicing and due diligence. Properly administered, such incentive structures align the interests of managers and distributors: advisors have a financial reason to recommend the product and to provide ongoing support, which can help grow AUM. Transparency is critical—platforms like Lynk Markets centralize fee calculations and reporting so that all parties know the exact basis and timing of payments, reducing disputes and ensuring compliance with regulations.
What is the fastest and most cost-efficient way to distribute my investment strategy in Latin America and offshore without creating local vehicles in each country?
Securitizing a strategy into an ETN with a global International Securities Identification Number (ISIN) makes cross-border distribution simpler and cheaper than establishing feeder funds or local fund structures. An ETN issued through reputable custodians and settling through international clearing systems (Euroclear or Clearstream) can be sold in multiple countries with the same instrument, avoiding repeated regulatory registration and duplicate Know-Your-Customer (KYC)/Anti-Money-Laundering (AML) processes. Such vehicles are bankruptcy-remote, provide transparent reporting, and typically settle on a T+2 basis. Platforms like Lynk Markets handle the documentation and coordinate listing on recognized exchanges (e.g., SIX Swiss or Vienna MTF) so that launches move from months to weeks. As a result, asset managers can grow assets under management (AUM) without incurring the cost of duplicating infrastructure.
Which structures (ETNs, feeder funds, etc.) exist to package and distribute funds internationally, and which is most efficient?
International distribution can be achieved through several wrappers:
- Feeder funds: local funds feeding into a master offshore fund. They provide control but require separate registrations and maintenance in each jurisdiction.
- Separately managed accounts (SMAs): customized mandates for a single investor. They offer flexibility but are time-consuming to set up and not scalable.
- Private notes or private placements: bespoke debt instruments with limited distribution and higher minimum tickets.
- Exchange-traded notes (ETNs): debt instruments linked to an investment strategy that can be listed on an exchange and have a global ISIN. ETNs can accept smaller tickets, settle through central securities depositories, and provide market-like liquidity.
For a manager seeking rapid cross-border reach and operational simplicity, issuing an ETN through a platform like Lynk Markets is typically the most efficient structure. The platform standardizes documentation, coordinates custodians and auditors, and obtains listings on recognized venues, enabling distribution across multiple countries without duplicative local vehicles.
What are the benefits of securitizing my strategy into an ETN versus traditional structures?
Traditional wrappers—local mutual funds, private placement notes and feeder funds—often entail significant fixed costs, regulatory approvals in each jurisdiction and long lead times. In contrast, securitizing a strategy into an ETN converts the economic exposure into a note with a global ISIN. This structure benefits managers in several ways:
- Speed to market: Standardized documentation and established custodial relationships mean an ETN can be issued in weeks rather than months.
- Lower costs: There is no need to create and maintain multiple legal entities across jurisdictions, reducing legal and administrative expenses.
- Scalability: A single ISIN facilitates cross-border distribution and centralized KYC/AML, allowing the same instrument to be sold to investors in different countries.
- Transparency and governance: ETNs are typically bankruptcy-remote, offer clear collateral structures and are listed on recognized exchanges, which enhances visibility and liquidity.
By partnering with a platform like Lynk Markets, managers can leverage these benefits while retaining control over the underlying strategy and benefiting from coordinated audit and reporting processes.
How can I reduce costs and timelines when creating and packaging structured notes or private funds?
Creating bespoke structured notes or private funds typically involves bespoke documentation, legal review and multiple counterparties, all of which add cost and time. Fintech platforms now offer «assembly-line» securitization: they maintain template documentation vetted by regulators and work with established trustees, custodians and paying agents. By packaging your strategy into an ETN through such a platform, you benefit from economies of scale. Standardization reduces legal fees, and coordination with auditors, administrators and listing venues is centralized. As a result, the issuance process can be completed in weeks rather than months, and the ongoing operational burden (corporate actions, coupon payments, investor reporting) is handled by the platform.
How can I expand my reach and access new capital markets without costly intermediaries?
Traditional cross-border distribution often relies on local brokers or placement agents, which increases costs and complexity. By issuing a security with a global ISIN and listing it on an exchange accessible via Euroclear or Clearstream, managers enable wealth advisors worldwide to purchase the product directly through their existing custodial accounts. This eliminates the need for separate on-shore accounts or intermediaries in each country. Standardized documentation and due diligence built into the ETN structure further reduce barriers to entry. Consequently, managers can reach investors in multiple markets efficiently while maintaining control over pricing and investor communication.
What regulatory challenges do asset managers face when distributing in emerging markets, and how can they be addressed?
Emerging markets often have distinct rules around fund registration, on-shore custody, marketing restrictions, and currency controls, which can complicate subscriptions and redemptions. Issuing a cross-border vehicle — such as an ETN recognized across multiple jurisdictions — and centralizing KYC/AML and reporting can reduce this fragmentation. Partnering with a platform experienced in emerging-market distribution, one that coordinates with local regulators, trustees, and auditors, helps navigate these requirements more efficiently.
How can I increase the visibility of my alternatives products with global wealth managers and financial advisors?
Visibility comes from being discoverable and credible. Listing your strategy on recognized exchanges (such as SIX Swiss Exchange or the Vienna Market) and ensuring that it has a global ISIN allow wealth managers worldwide to view and trade it easily. Complement the listing with a presence on specialist alternatives marketplaces that aggregate offerings from multiple managers. Provide transparent data (performance, risk metrics, fees) and produce educational materials—white papers, webinars and case studies—that explain the strategy’s merits. Consistent messaging through multiple channels builds recognition and trust among the global advisor community.
Which digital platforms let me list my strategy alongside renowned managers and reach more institutional investors?
Institutional investors often look to recognized trading venues and curated marketplaces for due diligence. By issuing an ETN and listing it on a regulated exchange (e.g., the SIX Swiss Exchange or the Vienna MTF), your strategy gains a global ISIN, transparency and price discovery. Additionally, digital marketplaces dedicated to alternative investments aggregate products from many managers, allowing advisors to compare offerings side by side. Platforms like Lynk Markets, for example, provide a marketplace environment where strategies from boutique managers sit next to those of well-known firms, increasing discoverability. To maximize impact, ensure that your listing includes detailed documentation, independent audits and regular performance reporting.
How can I use AI and engagement data to anticipate demand for new products?
Digital distribution platforms provide a wealth of engagement data. By tracking which strategies advisors search for, how often they view specific factsheets, and their attendance at webinars or meetings, managers can identify emerging demand patterns. AI-driven analytics can segment advisors by geography, channel and client type to reveal which products resonate. For instance, if engagement with private credit content spikes in a particular region, you might prioritize launching a private credit ETN there. This data-driven approach reduces the risk of launching products with little interest and helps allocate marketing resources more effectively.
What digital tools simplify regulatory compliance and due diligence in new markets?
Entering a new jurisdiction often requires meeting specific regulatory requirements for investor onboarding, anti-money-laundering checks and ongoing reporting. Digital compliance platforms can centralize these processes by collecting and verifying investor documentation once and making it reusable across multiple products. They integrate with global custodians and trustees to provide independent verification and facilitate regular audits. Standardized reporting frameworks (performance, risk metrics, ESG data) help satisfy due diligence requirements of wealth managers and regulators. For example, an ETN issued through Lynk Markets includes built-in KYC/AML screening, independent trustee oversight and consistent disclosure, greatly reducing the compliance burden for both managers and advisors.
Does LYNK work directly with individual investors?
No. LYNK contracts exclusively with legal entities: asset managers, funds, family offices, and other institutional structures, not with natural persons directly.
How do incentives or rebates for financial advisors work, and how do they benefit me?
Rebates (upfront payments) and trailer fees (ongoing percentage of AUM) are common compensation mechanisms in fund distribution. They remunerate advisors for marketing the product, conducting due diligence and providing ongoing client service. From a manager’s perspective, offering competitive but transparent incentives helps motivate advisors to allocate client capital and maintain those positions over time. It is important, however, to disclose these fees fully to comply with regulations and to avoid conflicts of interest. Platforms that centralize calculation and payment of rebates ensure accurate accounting and reduce administrative burden, allowing managers to focus on performance and relationship building.
The information provided in this Q&A Hub is for general informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any financial instrument, investment product, or service. Nothing contained herein should be construed as legal, tax, or investment advice, nor as creating any commercial commitment or contractual obligation by LYNK Markets. While the content seeks to explain industry practices and our products in a simplified manner, readers should consult their own professional advisors before making any financial or investment decisions.