Private market exchange ADDX has inked a Memorandum of Understanding (MOU) with Yangzijiang Financial Holding Ltd. (“Yangzijiang Financial”, together with its subsidiaries, the “Group”), an SGX-listed, Singapore-incorporated financial company engaged in the businesses of investment management, and the provision of wealth management and fund management services. The MOU[i] covers the distribution of the Group’s capital markets products.
Yangzijiang Financial (SGX: YF8) said in an earlier announcement[ii] this month that the Group has established a maritime fund with the name “Yangzijiang Maritime Private Equity Fund #2”. The maritime fund has a target fund size of US$600 million and has secured capital commitments of US$500 million. In addition, the Group will be establishing a cash management fund with a target fund size of S$200 million[iii]. The cash management fund will be established under the Variable Capital Company structure, with multiple sub-funds, which segregates assets and liabilities from each other.
The ADDX platform will serve as an additional distribution channel for the funds managed by the Group, including the maritime fund and cash management fund, broadening the Group’s investor reach and boosting its total assets under management (AUM).
ADDX, which aims to make investing fairer by democratising private markets, is a digital securities exchange that connects accredited investors to a selection of private market investment opportunities that include hedge funds, private equity, private credit, real estate, venture capital as well as debt and structured products. It currently serves individual accredited investors from 39 countries spanning Asia Pacific, Europe, and the Americas (except the United States), as well as corporate and institutional investors.
Using blockchain and smart contract technology, ADDX reduces manual interventions in the issuance, custody, and distribution of private market products. The resulting efficiency allows the platform to fractionalise investments in a scalable and commercially viable manner, reducing minimum investment sizes, and thereby widening investor access to private markets.
To-date, ADDX has listed more than 60 deals on its platform and worked with blue-chip names such as Hamilton Lane, Partners Group, Investcorp, Singtel, UOB, CGS-CIMB, as well as Temasek-owned entities Mapletree, Azalea, SeaTown and Fullerton Fund Management. The full-service capital market platform has raised a total of US$140 million in funding since its inception in 2017 and is backed by entities including the Singapore Exchange, the Stock Exchange of Thailand, Temasek subsidiary Heliconia Capital, the Development Bank of Japan, United Overseas Bank, Hamilton Lane, Tokai Tokyo Financial Holdings and KB Securities.
ADDX has been approved by the Monetary Authority of Singapore as a recognised market operator. It also has a capital markets services license to deal in securities and collective investment schemes as well as to provide custodial services.
Mr Vincent Toe, Chief Executive Officer and Chief Investment Officer of Yangzijiang Financial, commented: “This partnership with ADDX is expected to extend the breadth and scope of our capital markets products, thanks to ADDX’s wide-ranging network. Our collaboration with ADDX will add another distribution channel for our funds, allowing the Group to reach a much wider investor base, increase our AUM, and boost our recurring management fee-based income. It’s exciting to see the level of technology and innovation that ADDX is bringing to the private asset markets, and we look forward to working with them.”
Ms Oi-Yee Choo, Chief Executive Officer of ADDX, said: “ADDX is privileged to work with Yangzijiang Financial, a world-class institution. This collaboration reaffirms our commitment to expanding our capabilities and providing our investors and wealth management partners across the globe with a full shelf of investment solutions. In a time of unprecedented volatility and declining returns in the public markets, investors need diversification into private markets more than ever. ADDX is committed to transforming the investing landscape, and signing this memorandum of understanding brings us a step closer to that goal.”