Singapore-based digital securities exchange ADDX today announced it had tokenized an allocation to a global private equity fund by Partners Group, a private equity firm listed on the SIX Swiss Exchange.
Fast facts
- The allocation from the Partners Group Global Value SICAV Fund is the first from a major private equity firm that has been tokenized, ADDX said in a statement. The EUR 5.5-billion Partners Group Global Value SICAV Fund, which was launched in 2007, has exposure to more than 500 underlying companies and assets and is broadly diversified across North America (43%), Europe (40%), Asia Pacific (13%) and the rest of the world (4%).
- The tokenized fund units, offered in fractional sizes and issued using blockchain technology, will enable individual accredited investors to participate in the fund with a minimum ticket size of US$10,000, compared to US$100,000 or more typically required to gain access to private equity funds.
- “Private equity funds help investors achieve diversification from the public markets,” Oi Yee Choo, ADDX chief commercial officer, said in a statement. “They are a useful tool for lowering volatility while improving the long-term returns of a portfolio. But higher investment thresholds make it difficult for individuals to benefit — which is why we were determined to reduce the minimum buy-in to US$10,000, in line with ADDX’s mission of opening up private market opportunities to more investors.”
- “The benefits of tokenization cut both ways, as fund managers are getting access to investor capital not available to them previously. When capital is allowed to flow unimpeded to the best-performing opportunities, the markets are in an optimal state,” Choo added.