As the largest digital securities specialists and private market exchange in Asia, ADDX (formerly iSTOX) represents the perfect partner for firms looking to tokenize financial products, and expand in to the region. Hamilton Lane recognized this, and has just announced that with the help of ADDX, it will be tokenizing its Global Private Assets Fund or ‘GPA Fund’.
What it Means
This partnership and foray into Asian markets is about more than just Hamilton Lane. It provides savvy investors with a new opportunity to access a successful fund through the use of digital securities and the benefits associated with such assets (accessibility, cost, efficiency, transparency, settlement times, etc).
Per Hamilton Lane, The GPA Fund, which was launched roughly 3 years ago, boasts over $1.8B in assets and is comprised of investors spanning over 39 countries. In the time since launch, it has managed to average a 16.11% (net) annualized return.
Compared to more traditional avenues which typically require $125,000 investments, accredited investors interested in gaining exposure to the GPA Fund can do so with initial investments as little as $10,000. This is achieved through ADDX’s ability to, ‘…fractionalize investments in a scalable and commercially viable manner’.
Upon announcing this new partnership, representatives from each company took the time to comment.
Oi-Yee Choo, CEO of ADDX, states that, “Many investors don’t realize that the private markets are much larger than the public markets. Globally, more than 90% of companies with an annual turnover of US$100 million or more are private. For any investor, leaving private equity out of your portfolio essentially means turning one’s back on the vast majority of investment opportunities in the market. At a time of unprecedented volatility and declining returns in the public markets, diversification into the private markets is more important than ever.”
She continues, “We know the value private equity can bring to investors’ portfolios. The only missing link thus far has been the lack of access to such assets for most individual investors. With tokenization and fractionalization, ADDX is committed to plugging that gap. In doing so, we are pleased to partner with Hamilton Lane, a well-respected, world-class name in alternative investments.”
Juan Delgado-Moreira, Vice Chairman and Head of International, stated, “Hamilton Lane is dedicated to providing access to the private markets for a broader set of investors, and to doing so without some of the headaches that have historically been challenging for smaller investors. We seek to partner with firms that deliver transformative technology designed to drive our industry forward, and are excited to offer our investors access to GPA through this new platform.”
This is not the first time that ADDX has caught our attention over the past year. Only months ago, we touched on not only a strategic partnership between ADDX and Investcorp, but also a $200 million agreement with ICHAM meant to bring access to digital securities to Chinese investors.