Historically, investors in private commercial real estate funds have had their capital invested for a minimum 5-10 year hold period. Jasper aims to change that with our Secondary Market.
Funds are typically opened up for trading on Jasper's Secondary Market once the fund is fully allocated and a first full valuation of assets is complete. We expect liquidity windows will generally take place twice a year during the months of May and November, following the release of the latest quarterly report.
Jasper may change the liquidity window dates of a Secondary Market at any time at our discretion.
Market matching mechanics and example transactions
When a buy or sell order is placed, the system will first try and match it with existing orders at the specified price. If no orders are available to be matched due to a spread between buying and selling prices, orders will remain available for matching on the Secondary Market.
Once sell and buy orders are matched, the buyer has a hold placed on their wallet for the total matched amount based on the number of units & unit price. The buyer then has a period of time (typically three business days) to fund their wallet with those funds.
Funds are transferred to the seller's wallet once the buyer's wallet has been funded for the matched buy order amount. Simultaneously, holding ownership is transferred to the buyer and will show in their investor portfolio on the Jasper platform.
A seller want's to liquidate their holdings. The recent Unit Price of the fund they own is $1.10, the seller owns 100,000 units. The predefined range in which they can sell their units is set to 20%, allowing them to place a sell order between $0.99 - $1.21. The seller selects an ask price of $1.15 and places a sell order for the full 100,000 units.
There are two existing buy orders in the market, one for 50,000 units at a bid price of $1.16 and one for 200,000 units at a bid price of $1.15. Upon placing the sell order, the system automatically matches the sell order with any buy orders that meet the selling price. In this case, 50,000 units would be sold at $1.16 to the first buyer, and 50,000 at $1.15 to the second buyer. The second buyer's remaining order of 150,000 units at $1.15 will remain on the Secondary Market after matching.
Sellers are charged 2% of the total matched amount (based on the matching unit price, and the number of matched units). We currently offer zero secondary market transaction fees on buy orders.
There is no guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved. Units will not be listed on any public securities exchange. Investments offered by Jasper should be considered illiquid.