What's Happening?
Zest Equity, a digital transactional infrastructure company based in the UAE, has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global
Market (ADGM). This permission is a significant milestone for Zest Equity as it aims to digitize and streamline private market transactions across the MENA region and beyond. The company provides a unified digital platform designed to replace the fragmented and manual processes that have traditionally hindered private market deals. With the new license, Zest Equity can offer regulated escrow and distribution services, allowing clients to transact, hold funds, and manage deals within a secure and compliant framework. The platform integrates digital execution tools for Special Purpose Vehicle (SPV) formation and deal workflow management with regulated escrow services, addressing key friction points for investors and founders.
Why It's Important?
The acquisition of the FSP by Zest Equity is crucial as it represents a shift towards a more unified and efficient infrastructure for private market transactions. This development is expected to benefit investors and founders by reducing friction and enhancing the speed and security of transactions. By digitizing the execution of over 160 private-market transactions, representing more than $210 million in value, Zest Equity is setting a precedent for modernizing private markets. The company's efforts are supported by prominent investors, including Prosus Ventures and Morgan Stanley, highlighting the growing interest and investment in digital financial infrastructure. This move also aligns with ADGM's strategy to position itself as a leading international financial center, attracting innovative fintech companies and fostering a robust ecosystem for financial services.
What's Next?
Zest Equity plans to use the ADGM license as a foundation for global expansion, aiming to connect capital across emerging and developed markets. The company intends to integrate regulated escrow and distribution pathways with existing digital execution tools, marking the first of several regulatory milestones. As Zest Equity expands its capabilities, it will likely continue to attract institutional capital flows and enhance its infrastructure for private-market transactions. The company's strategic positioning within ADGM's regulatory framework provides clients with the assurance needed to move capital efficiently across jurisdictions, potentially leading to increased adoption of digital financial solutions in private markets.
