Oi-Yee Choo, CEO of ADDX
Global private market exchange ADDX has raised approximately US$20 million in a pre-Series B round of financing led by KB Securities, a subsidiary of South Korea’s largest banking group KB Financial Group.
The round kicked off in May 2022, when ADDX announced a US$58 million raise from the Stock Exchange of Thailand, Hamilton Lane, and UOB.
This brings the total funds raised by ADDX since its inception in 2017 to around US$140 million. The company also counts the Singapore Exchange, Temasek subsidiary Heliconia Capital, Tokai Tokyo Financial Holdings, and the Development Bank of Japan among its investors.
The startup will use the fresh capital to grow ADDX Advantage, a wealth management platform launched earlier this year for private banks, brokerages and family offices. A portion of the funds will go into global expansion.
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ADDX allows individual investors access to private market deals that have traditionally been open only to institutional investors, such as sovereign wealth funds and endowment funds. These include private credit and other fixed-income investments, private equity, hedge funds, and private real estate.
The exchange, regulated by the Monetary Authority of Singapore, uses blockchain and smart contract technology to automate manual processes. This reduces the minimum subscription sizes from US$1 million to US$5,000 while allowing secondary trading.
Oi-Yee Choo, CEO of ADDX, said: “The fundamental design of private markets — how and to whom securities are distributed, and whether secondary trading is facilitated — has transformed more over the past two years than it has over the two decades before that. The impact of that change has been positive: access to the means of wealth creation is becoming equal, and capital can flow unimpeded to the most efficient financing projects. In the long run, smooth and seamless capital markets will uplift growth in the real economy, with dividends for both workers and investors.”
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