SINGAPORE, August 21, 2021 – Investcorp, a leading global provider and manager of alternative investment products, and private capital exchange ADDX – formerly known as iSTOX – has announced a long-term partnership to expand the use of digital securities in the alternative investment or private market space. The collaboration promises a more seamless, coordinated delivery of opportunities to end-investors and will benefit accredited corporate and individual investors, offering them easier access to opportunities that traditionally require high minimum ticket sizes.
The first product that was offered under the partnership was a diversified portfolio of US residential properties. The Sunbelt Multifamily Portfolio raised US$150 million from global investors to be invested in five multifamily apartment complexes at near-full occupancy. The properties are in Texas, Arizona and Georgia, markets experiencing healthy economic and population growth. Following the close of primary subscription, the fund was listed on the ADDX Exchange for secondary trading in July.
Since 1996, Investcorp has acquired more than 900 properties for a total value of more than US$20 billion. According to Real Capital Analytics, Investcorp is the 3rd largest cross-border buyer of US real estate and 4th largest cross-border seller, over the full years of 2019 and 2020. The Sunbelt Multifamily Portfolio is the 20th such US fund which has been launched by Investcorp since 2012.
The Investcorp-ADDX partnership could cover a variety of alternative investment opportunities. The two companies will explore possible joint projects in areas such as private equity, real estate, credit management, absolute returns investments, strategic capital, and infrastructure. Investcorp is expanding its Asia footprint, having invested about $500 million in the continent over the past 18 months, in sectors such as technology, healthcare and consumer consumption. Investcorp could potentially make more opportunities available on ADDX’s regulated digital securities platform, which currently serves accredited investors from 27 countries, spanning Asia Pacific, Europe, and the Americas.
YC Tang, Vice President, Investor Relationship Management, Asia at Investcorp said: “We are pleased to have this partnership with ADDX to provide the segment of underserved investors with an array of diversified alternative investment products through a secure and an efficient platform. The Sunbelt Multifamily Portfolio is the first product we offered under this partnership, and we look forward to potentially offering more through this innovative platform, to meet the demands of a growing global marketplace.”
Oi Yee Choo, Chief Commercial Officer of ADDX, said: “The beauty of this new partnership lies in the fact that Investcorp and ADDX are both experts in the private markets – and yet we do have different geographical and commercial focus areas. When we combine our strengths, there is a fresh dynamism – an exciting, invigorating prospect. Individuals and companies that work with us will have an assurance that their capital is put to work in a smart way and in high-quality products. In the case of the Sunbelt Multifamily Portfolio, the efficiency gains from digital securities meant investors on ADDX could take part in the fund with a minimum amount of US$20,000 – significantly lower than the US$500,000 typically required for private real estate funds.”
Founded in 2017, ADDX is fully regulated by the Monetary Authority of Singapore (MAS). The financial technology company is backed by Singapore Exchange, Temasek subsidiary Heliconia Capital and Japan government-backed investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ)[5].