Token tech gives Asian investors access to US private equity firm
07:47, 30 March 2022
In yet another sign of how blockchain technology is opening up financial markets to non-traditional investors, Singapore digital exchange ADDX is launching access to US private equity firm Hamilton Lane Global Private Asset Fund.
The private equity firm currently holds over $850bn worth of assets under management and the tie-up with ADDX was described as a “major foray in Asia” for the US firm.
Using token technology powered by blockchain, accredited investors can now access Hamilton’s Global Private Assets Funds on a minimum ticket of $10,000 compared with a $125,000 using traditional investment approaches.
First tokenised issue by US firm
This is the first tokenised project by the US firm and according to a statement from ADDX it is among the first wave of private equity players to tap into the investor market via token technology.
Hamilton’s global fund was launched in May 2019, and has returned 16.11% (net) annualised since inception and has assets of more than US$1.845bn as of 31 January 2022.
ADDX is Asia’s largest private market exchange. Its individual accredited investors come from 39 countries spanning Asia-Pacific, Europe and the Americas (except the US), with more than half its investor base coming from Asia.
Private markets larger than public ones
According to ADDX CEO Choo Oi-Yee the majority of investors do not realise that the private markets are much larger than the public markets. The CEO says that across the globe more than 90% of companies with an annual turnover of US$100m or more are private.
For any investor, leaving private equity out of your portfolio essentially means turning one’s back on the vast majority of investment opportunities in the market. At a time of unprecedented volatility and declining returns in the public markets, diversification into the private markets is more important than ever,” she said in today’s release.
ADDX became licensed by the Monetary Authority of Singapore (MAS) as a private market exchange in February 2020. Since then, ADDX has listed 26 deals on its platform involving names such as Investcorp, UOB, CGS-CIMB, as well as Temasek-owned entities Mapletree, Azalea and SeaTown.
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