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Hanwha Investment & Securities invests US$4m in private capital platform CapBridge
SEOUL-BASED Hanwha Investment & Securities Co is investing US$4 million in CapBridge, a private capital platform backed by the Singapore Exchange (SGX), to promote the growth of the private markets ecosystem in South Korea and South-east Asia.
Hanwha provides asset management services, including brokerage and acquisition of stocks, bonds and derivatives; and is part of South Korean conglomerate Hanwha Group.
Johnson Chen, founder and CEO of CapBridge, said: "We are pleased to welcome Hanwha as our shareholder and strategic partner. We look forward to further building out the private markets ecosystem and offering more private markets opportunities to companies and investors in South Korea.
"Together with Hanwha, we will also work on developing more innovative financial services and products for the global private markets."
Kwon Hee-baek, CEO of Hanwha Investment & Securities, said: "With this partnership, we will actively collaborate with CapBridge and the private securities platform 1exchange (1X), to introduce private markets opportunities to our customers across the region."
Mr Kwon added that the firm is expanding its global digital business, and looks forward to extending its footprint in South Korea, as well as the growing South-east Asia private markets.
With this collaboration, pre-IPO (initial public offering), family-owned businesses and growth stage companies in South Korea and Asia can work with Hanwha and the CapBridge private markets platform to match with international investors, CapBridge explained.
CapBridge's associate entity, 1X, is Singapore's only regulated private securities exchange. It is regulated by the Monetary Authority of Singapore, with SGX as a strategic partner and shareholder.
According to CapBridge, it is able to offer companies with integrated solutions to access private markets for capital, along with a liquidity pathway via a private listing on 1X.
"With a private listing, companies and owners have the benefit of liquidity while remaining private for optimal control and flexibility. Investors seeking higher-than-average returns from private equity will also be able to access such opportunities via the CapBridge private markets platform," the company said.
Following a report by McKinsey & Co, the private equity market in South Korea is the third-largest in Asia and poised for more growth. In addition, global and local acquisitions, as well as private capital committed have been steadily increasing, and returns from private equity have significantly outstripped the public market, CapBridge noted.
"Investors interested to participate in private equity capital raising campaigns by global growth companies can access such opportunities on CapBridge (www.CapBridge.sg), where institutional investors lead deals with individual co-investors jointly investing on the same terms," CapBridge said.
"Individual investors can also gain access to private equity via the innovative Preferred Access route, from as low as S$5,000 – enabling individuals to commit smaller investment amounts across multiple deals as a way to diversify portfolios."