Singapore-based online investment platform CapBridge is opening a private market platform for retail investors, enabling them to invest in late-stage growth and pre-IPO deals, according to a press statement.
The platform, named Preferred Access, seeks to lower the barriers of private equity play for Singapore’s retail investors. Capbridge has already secured the approval to extend its activities beyond accredited investors and institutional investors.
Furthermore, the platform will also allow the individuals to access private equity opportunities in order to get higher-market return, without being accredited investors.
“With technology and intelligent deal-sharing, we are now able to better offer and lower the barriers of investing so that more investors can participate in private growth opportunities. This is timely given the relatively more volatile global economy today,” said Johnson Chen, founder and CEO of CapBridge.
According to McKinsey & Company’s latest report on private market, the private equity’s net asset value has grown more than seven-fold since 2002, twice as fast as global public equities. On the other hand, the number of publicly traded firms in the US fell by 16% from 5,100 to 4,300, with some large investors now allocating to private markets in order to get diversified exposure to global growth.
CapBridge’s Preferred Access will focus on certain private equity investment deals such as pre-IPO or late-stage growth private companies with firm exit or liquidity plans; convertible or redeemable securities with a clearly-defined structure for return on investment; as well as co-investments alongside expert lead professional investors.
The private investment opportunities on CapBridge comprise private companies raising capital for the next stage of growth usually suited and interested in a partial-liquidity private listing on 1exchange, Singapore’s private securities exchange.
CapBridge also enables retail investors to participate in the fundraising of these growth companies.
The investments by retail investors will be carried out through a special purpose holding vehicle that will invest and hold underlying assets in the private equity deal offered on the CapBridge platform.