Singapore-based private capital raising platform CapBridge is aiming to double its investment offerings to $2 billion to roughly 100 clients by the end of this year.
According to CapBridge, the platform offered $900 million worth of deals to 48 clients in 2018. These were deals on its primary capital raising platform since it launched its secondary trading unit, 1Exchange (1X), late last year. The SGX-backed platform received regulatory approval to operate 1X in November, making it one of the first private securities exchanges in Singapore.
In an interview with DEALSTREETASIA, CapBridge CEO and founder Johnson Chen said that the platform will take a ‘modest’ approach to rolling out deals on 1X. He added that it will begin offering these deals on 1X in batches of five, starting in mid-2019.
“We want to make sure that our first batch of companies is genuine in terms of wanting to pursue a growth story and that they are a strong showcase of the capabilities of what we can do,” said Chen.
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SGX-backed CapBridge also plans to launch a new product in property holding companies further down the line. This will target special purpose vehicles (SPVs) created for specific real estate development projects that are looking to raise capital or offload risk on their balance sheet. Such SPVs usually come under large property holding companies such as Capitaland or City Developments Limited.
“We are talking to various parties on the real estate side, and are keen to test and launch this with real estate property holding companies. I think there’s a huge demand for real estate in Asia, so having the ability to make a property asset bank entity tradable will be very appealing,” Chen said.
Last week, CapBridge launched Preferred Access, which offers individual investors access to PE deals for ticket sizes as small as $3,684 (S$5,000). Chen said he expects private capital markets to expand as investor interest grows.
“The macroeconomics is showing that the private space is getting bigger. More and more family offices are looking at direct co-investments, while other private capital investors are shifting away from the 2 and 20 model and the 10-year fund to look at other options, such as those with shorter holding periods,” explained Chen.
Chen added that alternative investment products like Preferred Access will generate more liquidity in private markets, something he believes the current ecosystem still lacks.