Caruso's secondary market feature gives fund managers the ability to efficiently facilitate liquidity for their investors. This feature also allows investors to independently initiate sell or buy order through the portal, subject to confirmation by fund manager.
Enabling Secondary Market
To enable secondary market for a fund, on the Details tab scroll towards the bottom until you see the Secondary Market section.
Use the toggle to switch the secondary market on or off as required. If required, you can add a fee percentage that will be charged to the seller on successful trades.
Reviewing sell orders
When an investor has initiated a sell order via the investor portal, a system task to 'Review sell order' will be created, you can then assign this task to the relevant teammate for approval. From this task, you can either Confirm, Cancel or Edit the buy order.
Once confirmed the investor will receive an email notifying them that the sell order has been accepted. A confirmed sell order will create a secondary market listing visible to other investor on the portal.
Reviewing buy orders
When an investor places a bid on a listing, a system task to 'Review buy order' will be created, you can then assign this task to the relevant teammate for approval. This gives you the ability to review all submitted buy orders and present them to the seller and complete the transaction.
All secondary market related activity can we reviewed by navigating to the relevant fund and then Secondary Market tab.
Please note:
Switching off the secondary market for a fund will remove any active secondary market listings under the particular fund.
Accepting a buy order will automatically cancel any other pending buy orders. This cancelation will also email the key account(s) informing them that their buy order could not be fulfilled.
Caruso currently does not charge fees for listing or bidding on the secondary market.
Please ensure that all relevant necessary payments have been made prior to completing a buy order in Caruso.