By Oi-Yee Choo, Chief Executive Officer of ADDX
In the first quarter of 2022, we continued to make noteworthy strides in the growth journey of ADDX. None more so than our new service for wealth managers, dubbed ADDX Advantage; and our onboarding of another world-class issuer, Nasdaq-listed Hamilton Lane.
Expanding our individual accredited investor base has been a key priority for ADDX since we began full commercial operations in February 2020. As our growth in this investor segment is now stable at a pace of around 120% per annum, we decided in Q1 2022 to broaden our focus and to begin serving institutional and corporate investors.
We launched private market services for wealth managers such as private banks, brokerages, multi-family offices and external asset managers, under a new business line called ADDX Advantage – one of my first major initiatives as CEO.
ADDX Advantage empowers wealth managers to provide their end-clients with access to private equity, hedge funds, unicorn companies and more, at a minimum investment size of as low as US$10,000, down from the typical US$1 million.
Our B2B2C value proposition is clear: Wealth managers can plug and play, gaining instant access to world-class private market products, without taking the time-consuming route of negotiating deals with each product owner separately. They secure an advantage in the marketplace by offering clients the ability to build diversified portfolios. ADDX Advantage also covers B2B clients such as corporate treasuries looking to invest their cash holdings.
Serving institutions and corporate investors was more complex and required functions such as API connections and multi-user access. Our top-class in-house team succeeded in building ADDX Advantage while concurrently meeting the demands of all other existing business areas.
The response we received has been positive. StashAway, Southeast Asia’s fastest growing digital wealth manager, CGS-CIMB, a leading securities brokerage in Asia, as well as Raffles Family Office were among the first businesses to sign up for ADDX Advantage.
ADDX’s mission of democratising private market investing is behind each and every new initiative we embark on. Having built a regulated platform that serves individual investors, expanding the service to wealth managers and corporate investors was a natural next step.
Expanding offerings for investors
At the same time, we are committed to delivering a robust pipeline of new issuances, so we can offer investors a steady supply of fresh, high-quality opportunities. In this regard, our recent partnership with the private markets investment firm Hamilton Lane to tokenise a class of shares issued by their Global Private Assets (GPA) Fund was a major milestone.
Hamilton Lane is one of the world’s largest investors and allocators of capital to the private markets. It deployed US$37 billion in 2021 and has $851 billion in assets under management and supervision, as of December 31, 2021.
This was the first time Hamilton Lane has tokenised a fund and this reflects the confidence they have in ADDX’s infrastructure. Launched in May 2019, the GPA Fund has returned an annualised 16.11% (net) since inception and has assets of more than US$1.845 billion as of 31 January, 2022.
The Hamilton Lane listing comes after other major global players tokenised products on our platform, including Partners Group and Investcorp. We expect to see more fund managers and general partners of similar calibre listing their funds on ADDX in the months to come.
We have also continued to track the performance of past tokens. The following tokens made significant gains in 2021:
- iQuant, a feeder into the top-ranked global hedge fund Quantedge Global Fund, saw annualised returns of 18.9% from March 2021 to March 2022, and net returns of 50.31%. It was listed in May 2020.
- Yun Qi Fund III, a specialist fund investing in enterprise & productivity solution sectors managed by a top-ranked Chinese VC firm, saw annualised returns of 14.6% from June 2021 to December 2021, and net returns of 7.3%. It was listed in February 2021.
- Ternary Cypress Fund, a hedge fund focused on scarce real assets in sectors like nuclear, oil tankers and specialty engineering, saw annualised returns of 52.7% from March 2021 to March 2022, and net returns of 77.7%. It was listed in December 2020.
Strong investor base growth, a consistent pipeline of high-quality issuances, as well as the trust and confidence of our stakeholders – these are the key ingredients underpinning ADDX’s long-term success.
We’ve come a long way, having built Asia’s largest private market exchange. Still, the journey is only just beginning. Stay tuned for many other exciting developments throughout the rest of 2022.
Open your account on ADDX and start investing in the private markets.
ADDX is your entry to private market investing. It is a proprietary platform that lets you invest from USD 10,000 in unicorns, pre-IPO companies, hedge funds, and other opportunities that traditionally require millions or more to enter. ADDX is regulated by the Monetary Authority of Singapore (MAS) and is open to all non-US accredited and institutional investors.