Web3 investment firm Borderless Capital announced its acquisition of CTF Capital, a cutting-edge quantitative trading and asset management firm based in Miami with teams in Latin America. The financial terms of the deal have not been disclosed. This is Borderless’ first acquisition since the company was founded in 2018.
With the addition of CTF Capital, Borderless Capital will now have the ability to integrate AI-infused quant trading expertise into its own operations. This strategic move also marks Borderless’ expansion into the Latin American market, with plans to establish a new office in Argentina during the second quarter of this year.
CTF Capital has become well-known for its use of advanced technologies, including AI and machine learning, in their trading models. Some of their capabilities include automated market making through decentralized exchanges and maximal extractable value strategies, which allow block miners to profit from manipulating transaction orders in decentralized finance. These strategies provide a competitive edge in the fast-paced web3 world, where digital assets and blockchains can experience sudden fluctuations.
The acquisition of CTF Capital will bring Borderless Capital’s total assets under management (AUM) to over $500 million. Currently, Borderless oversees six funds, including a $50 million cross-chain fund and the Algorand Fund. All existing funds managed by CTF Capital will be merged into Borderless’ Multi-Strategy Fund V LP, which was launched last year and currently manages $100 million in assets. This fund is specifically designed to optimize risk-adjusted returns for investors in both liquid and soon-to-be-liquid digital assets.
As a result of the acquisition, Borderless Capital’s team will expand to almost 40 employees, with the addition of CTF’s 11 staff members and two partners. David Garcia, co-founder and managing partner at Borderless Capital, shared his excitement about the technology and expertise that CTF Capital brings to the company.
“From a technology standpoint, the team at CTF Capital has been working for over three years to develop their machine learning and AI-powered blockchain investment platform, as well as identifying emerging opportunities on-chain such as MEV,” Garcia explained to TechCrunch.
In terms of finances, Borderless Capital expects to benefit from synergies created by the acquisition, including access to a new group of limited partners (LPs) in Latin America. This will help solidify Borderless’ position in the region and open up new opportunities for growth.
Garcia also noted that Borderless Capital already has a significant presence in Latin America through multiple portfolio companies, such as Securitize, a platform for digital tokenized securities, and Blockdaemon, a unicorn startup providing blockchain infrastructure. With the addition of CTF Capital’s local office in Argentina, Borderless will be able to better serve their existing investors and clients in the region.
Other notable portfolio companies for Borderless Capital include Wormhole, a blockchain infrastructure company, and Helium Network, a decentralized physical infrastructure network that offers wireless connectivity for IoT and mobile devices.
