Borderless Capital Boosts Web3 Investing with AI and Quant Expertise via CTF Capital Acquisition

Borderless Capital Acquires CTF Capital, Expanding into Latin America and Adding AI-Powered Trading Expertise

Borderless Capital, a web3-focused investment firm, announced on Tuesday its acquisition of CTF Capital, a Miami-based quantitative trading and asset management company with technology and operation teams in Latin America. The financial terms of the deal, which marks Borderless’ first acquisition since its founding in 2018, were not disclosed.

Enhancing Capabilities and Expanding Geographically

The acquisition of CTF Capital brings AI-infused quantitative trading expertise to Borderless Capital’s operations. Additionally, the deal facilitates the firm’s expansion into Latin America, with plans to establish a new office in Argentina, a leading hub for web3 technology innovation, in the second quarter of this year.

CTF Capital’s Cutting-Edge Trading Strategies

CTF Capital has developed sophisticated trading models and capabilities that leverage artificial intelligence (AI) and machine learning (ML) strategy engines, automated market making (AMM), and maximal extractable value (MEV) strategies. These advanced tools enable the firm to navigate the rapidly evolving web3 landscape, where the ability to trade nimbly is crucial for success.

Combining Forces and Merging Funds

Following the acquisition, Borderless Capital will manage over $500 million in assets under management (AUM) across six funds, including a $50 million cross-chain fund and the Algorand Fund. CTF Capital’s existing funds will be merged into Borderless’ Multi-Strategy Fund V LP., launched last year with $100 million under management, focusing on generating risk-adjusted maximum returns for investors in both liquid and soon-to-be liquid digital assets.

Team Expansion and Synergies

The entire CTF Capital team, consisting of 11 staff members, including two partners, has joined Borderless Capital, increasing its total team to nearly 40 employees post-acquisition. David Garcia, co-founder and managing partner at Borderless Capital, emphasized the technological advancements and innovative on-chain opportunities that CTF Capital brings to the table, such as participating in the MEV markets.

Borderless Capital anticipates financial synergies through the acquisition, as it introduces a new set of limited partners (LPs) from Latin America. This development will help the investment firm establish a strong presence in the region and create new opportunities.

“Borderless already has significant exposure through several portfolio companies from this geography [Latin America]. On top of that, we have a vast list of investors and clients from Latin America, a lot of them that were part of CTF Capital Funds prior to the acquisition, and by opening a local office in the region [Argentina], we will be able to provide a better, more custom and direct service to them,” Garcia said.

Notable Portfolio Companies

Borderless Capital’s portfolio includes several prominent companies in the web3 space, such as Securitize, a digital tokenized securities end-to-end platform; Wormhole, a blockchain infrastructure company; Blockdaemon, one of Borderless’ first unicorns and a blockchain infrastructure company; and Helium Network, a decentralized physical infrastructure network that provides wireless connectivity for IoT devices and mobile devices.