Fidelity Investments is expanding its lineup of alternative Investments with the addition of the Fidelity Private Credit Fund. This fund, managed by Fidelity Diversifying Solutions LLC, is designed to provide investors with access to private credit Investments and is the latest in a series of initiatives by the firm to diversify its asset management options.
Kevin Barry, head of Fidelity Workplace Investing, said: “Given the success of our commercial relationship with Shoobx and the increasing demand from private companies for equity plan capabilities, the acquisition of Shoobx was a natural fit for us. This addition to our lineup of alternative Investments gives investors access to private credit Investments and furthers our commitment to providing our clients with the best Investing experience.”
Fidelity recently acquired Shoobx, a Boston-based equity management platform, in order to bolster its commitment to equity plan capabilities for private companies. The financial terms of the transaction were not disclosed.
In addition to the Private Credit Fund, Fidelity is also expanding its lineup of alternative Investments with the launch of a new stock plan services division. The new division will provide investors with the ability to manage their equity plan Investments in a variety of ways, including setting up direct deposits, executing trades, and managing their accounts.
Furthermore, Fidelity Investments is also reportedly developing an NFT marketplace as part of its metaverse plan. The financial services corporation has filed for a trademark for a “Metaverse Marketplace” and is reportedly exploring the potential of a blockchain-based marketplace for digital assets.
On the other hand, some of the world's largest asset managers, such as BlackRock Inc., Fidelity Investments and Carmignac, are warning that markets are overheated and that investors should be cautious about making big moves. They are urging investors to focus on fundamentals and to be wary of getting caught up in the hype of fast-moving markets.
Finally, Fidelity Investments recently settled a lawsuit with a former broker who accused the firm of wrongfully terminating him. The firm was ordered to pay the broker nearly $500,000 in compensatory damages.
