Digital Stock Exchange ADDX reveals that it symbolized an allocation from a private equity fund managed by Partner group, an international private market investment company.
As mentioned in a press release shared with CI, the allocation of Partners Group Global Value SICAV Fund is “the first of a large private equity firm to be tokenized, with the aim of allowing individuals to participate in a space traditionally dominated by institutional investors”.
The announcement also noted that most private equity funds “require an investment of $ 100,000 or more to access.” Due to the efficiency of tokenization, the new line of private equity fund products on the ADDX platform is “available to accredited international investors at a minimum amount of $ 10,000”.
Created in 2007, the Partners Group Global Value SICAV Fund offers immediate exposure to “a globally diversified private equity portfolio, without the J-curve effect that affects newly created private equity funds.”
The update also noted that the fund has exposure to over 500 companies and underlying assets and is diversified across multiple sectors and “old years”. The fund’s assets are spread internationally, North America (43%), Europe (40%), Asia-Pacific (13%) and the rest of the world (4%). By financing stage, “the largest part of the portfolio is redeemed (79%), followed by special situations (16%) and risk capital (5%).
As stated in the press release:
“The tokenized fund units in this ADDX offering are part of the latest USD share class launched in January 2019, with a year-to-date performance of 12.7% per year. The annualized performance since the creation of this share class is 16.7% per year.
The open-ended fund allows investors to subscribe or redeem units “on a monthly basis, subject to lock-in provisions, an unusual feature for a traditionally illiquid asset class”. Investors who participated via digital tokens on ADDX can also trade them daily through the ADDX exchange, the announcement confirmed.
Victor jung, Head of Channel Partners and Liquid Private Markets in Asia, Partners Group, said:
“Tokenization marks another important step for the private market sector. Partners Group has always been at the forefront of providing innovative private market solutions to different types of investors and the story continues today, supported by strong demand from the investor universe. accredited. We are excited to be working with ADDX to further facilitate access to private market investments and contribute to the “democratization” of private markets, which is a dominant trend that is here to stay. “
Oi Yee Choo, ADDX Commercial Director, said:
“Private equity funds help investors diversify from public markets. They are a useful tool for reducing volatility while improving the long-term returns of a portfolio. But higher investment thresholds make it difficult for individuals to benefit – which is why we were determined to reduce the minimum buy-in to $ 10,000, in line with ADDX’s mission to open up private market opportunities to more investors. We are doubly pleased that this first allocation of private equity funds on ADDX is managed by Partners Group. ”
Choo added that the benefits of tokenization “trickle down both ways, as fund managers have access to investor capital that was not available to them before.”
Whenever capital is “allowed to flow unimpeded to the best performing opportunities, the markets are in an optimal state,” Choo explained while adding that “in the long run, we will see this new technology increase the flow of funds. capital from public markets to public markets “. private markets and redistribute wealth from institutions to individuals.
Regulated by Monetary Authority of Singapore (MAS), ADDX is a digital stock exchange which aims to “democratize access to private investments”. Digital securities are also referred to as security tokens or tokenized securities.
They are issued using blockchain and smart contract technology in order to “automate the manual and error-prone processes that have so far rendered inefficient the distribution of private market securities to large numbers of companies. investors, ”the announcement explained.
The technology “executes securities trades faster and cheaper, including actions such as fund unit redemptions, dividend and coupon payments, management of capitalization tables as well as secondary trading. “
Established in 2017, ADDX, which previously operated as iSTOX, is “a full-service capital markets platform with MAS licenses for the issuance, custody and secondary trading of digital securities” . The Fintech company got $ 50 million through its Series A in January of this year.
Its shareholders would be the Singapore Stock Exchange, the subsidiary of Temasek Heliconia Capital and the Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ).