Private Capital Markets & Alts

Alternative investments (Alts) have become synonymous with the evolution of private capital markets. What was once a fragmented sector of private equity, venture capital, and real estate is now undergoing a technological transformation powered by blockchain, AI, and digital securities.

The JOBS Act laid the foundation for this shift by opening new capital-raising avenues through Reg CF, Reg A, and Reg D (506(b), 506(c), and 504). Today, Alts and private capital markets are converging, requiring the same level of compliance, transparency, and regulatory oversight as traditional securities.

This transformation would not be possible without the Kore Infrastructure—a fully integrated compliance and capital-raising ecosystem designed for the JOBS Act and beyond. KoreChain, the first blockchain company to receive qualification for tokenized securities, is driving this shift, enabling issuers, broker-dealers, and investors to transact 100% compliantly under FINRA and SEC regulations.

The JOBS Act: The Catalyst for the Alts Revolution

The JOBS Act of 2012 revolutionized private markets by allowing issuers to raise capital from both accredited and non-accredited investors while staying within regulatory compliance. This led to the rise of RegCF, RegA+, and RegD offerings, which have since fueled the Alts sector:

• Regulation CF: Enables companies to raise up to $5 million per year from the general public, opening investment access beyond institutions.
• Regulation A+: Allows issuers to raise up to $75 million annually with SEC qualification and investor protections.
• Regulation D (506(b), 506(c), 504): Permits companies to raise unlimited capital from accredited investors while offering varying levels of solicitation and investor verification requirements.

Why This Matters for Alts

Alts are no longer an unregulated asset class—they operate within the same regulatory framework as traditional securities. Whether it’s venture capital, tokenized assets, private equity, or digital securities, issuers must follow AML/KYC, investor verification, and secondary market compliance just as they would in private placements under Reg D.

🔹 Key Takeaway: If you are working with a FINRA-registered broker-dealer, your Alts transactions must adhere to the same compliance standards as any other private market securities offering.

KoreChain: The First Blockchain Qualified for Tokenized Securities

One of the most significant advancements in Alts and private capital markets is the tokenization of securities. KoreChain is the first blockchain company to receive SEC qualification for tokenizing securities, providing a fully compliant digital infrastructure for the industry.

How KoreChain Transforms Alts & Private Markets

✅ Regulatory-Approved Digital Securities: KoreChain ensures that tokenized assets comply with SEC and FINRA regulations, making them as legitimate as traditional securities.
✅ Smart Contracts for Compliance: Transactions are pre-programmed to meet AML/KYC, investor verification, and transfer restrictions, reducing human error.
✅ Immutable Records & Auditability: All transactions are recorded on the blockchain, meeting FINRA Rule 17a-4 and SEC audit requirements.
✅ Seamless Secondary Market Trading: KoreChain enables compliant secondary trading of private securities, bridging the liquidity gap in private markets.

By leveraging blockchain technology, issuers, broker-dealers, and transfer agents can streamline Alts transactions with greater efficiency, security, and compliance oversight.

How Compliance for JOBS Act & Alts Are the Same

A common misconception is that alternative investments require different compliance rules compared to private securities under the JOBS Act. The reality? They are the same.

If a firm is working with a FINRA broker-dealer, compliance applies regardless of whether an offering involves venture capital, real estate, or digital assets. Here’s why:

1. Investor Verification Is Mandatory

Under Reg D 506(c)  issuers must verify accredited investors before accepting investments.  Kore Infrastructure automates real-time investor verification, ensuring 100% compliance with SEC requirements.

2. FINRA Rule 17a-4 for Recordkeeping

All broker-dealer records must be stored in a tamper-proof, auditable format. KoreChain’s blockchain-based system meets FINRA’s 17a-4 requirements, ensuring that investor records, contracts, and transaction histories are permanently recorded.

3. AML/KYC Compliance for All Transactions

Regardless of whether you’re dealing with tokenized securities or traditional RegD offerings, AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures must be followed. Kore’s Compliance Desk automates identity verification, AML, sanction, PEP, bad actor, and fraud prevention.

4. Secondary Market Trading Compliance

Alts and private securities face liquidity challenges. However, KoreChain enables fully compliant secondary trading, ensuring that all transactions meet SEC Rule 144 and FINRA ATS (Alternative Trading System) regulations.

🔹 Key Takeaway: Broker-dealers facilitating Alts transactions must follow the same compliance framework as they would for private placements under the JOBS Act.

Case Study: How Kore Infrastructure Ensures 100% Compliance for Alts

📌 Challenge: A FINRA broker-dealer was struggling to handle compliance for 506(c) and tokenized securities, requiring manual investor verification and document storage.

📌 Solution: By integrating Kore Infrastructure, they:

• Automated investor verification (reducing time from weeks to minutes).
• Ensured full FINRA Rule 17a-4 compliance by using immutable blockchain-based records.
• Enabled compliant secondary market trading for tokenized assets.

📌 Outcome: The firm maintained 100% regulatory compliance, improved operational efficiency, and reduced compliance costs by 40%.

Final Thoughts: Why Alts & Private Markets Are the Future of Investing

The line between private capital markets and alternative investments is no longer blurred—they are one and the same. With the right technology, regulatory infrastructure, and compliance framework, Alts are becoming the future of diversified investing.

🔹 Key Takeaway: If you are a broker-dealer, compliance officer, or investment professional, ensuring that Alts transactions follow JOBS Act regulations is critical. The Kore Infrastructure provides the technology, compliance automation, and regulatory framework needed to operate with 100% confidence.

🚀 Ready to Navigate Alts & Private Markets with Confidence?

🔗 Schedule a Meeting to See Kore Infrastructure in Action