ADDX shoots for US$1b in transaction volume by 2023

Singapore

PRIVATE markets platform ADDX has set its sights on transaction volume of US$1 billion by 2023, more than 6 times the volume of US$150 million achieved in 2021.

ADDX, which has announced a reshuffling of its executive appointments, expects the growth to be fuelled by the launch of institutional and corporate investor accounts this year, and robust growth in the number of individual investor accounts.

The company said a pilot programme to take on institutional and company investors met an "encouraging takeup'' from wealth managers, external asset managers and family offices.

In a statement, the firm said Oi-Yee Choo will become the chief executive officer of ADDX Pte Ltd. The latter is a newly established entity which will operate the ADDX platform, and is fully owned by parent company ICHX Tech.

ICHX Tech will continue to operate the ADDX platform under existing licences until approvals from the Monetary Authority of Singapore (MAS) are obtained for ADDX Pte Ltd. Choo's appointment as CEO of ADDX Pte Ltd is also subject to MAS approval.

ADDX co-founder Danny Toe, who has been at the platform's helm, will remain CEO of ICHX Tech. Co-founder Darius Liu, who had been chief operating officer of ICHX Tech, is group chief strategy officer.

Inmoo Hwang, previously head of business strategy and growth, will become COO of ADDX Pte Ltd.

The group's permanent headcount will rise to 120 this year, from 90 at end-2021.

So far the lion's share of transactions on the platform has come from individual accredited investors from 27 countries spanning the Asia-Pacific, Europe and the Americas excluding the US. By 2023, the total number of deals on the platform is expected to quadruple to hit 100, up from 24 deals at end-2021.

ADDX harnesses blockchain and smart contract technology to make private market assets accessible in bite-sized chunks, reducing the entry investment from typically US$1 million to US$10,000. The platform also provides a liquidity avenue for assets such as private equity, where a premature exit via the secondary market is challenging and costly for individuals. It is open only to accredited investors.

ADDX was founded in 2017 and began commercial operations in 2020 after graduation from the MAS fintech regulatory sandbox.

Choo said: "Reaching a critical mass will signal that we are the primary venue for any issuer or investor looking to deal in private market investments. It will strengthen our ability to achieve our mission of ensuring fair and equal access to the private markets for all - including, ultimately, retail investors.''

"The end game is ... truly diversified portfolios not just for sovereign wealth funds and pension funds, but for every person on the street. Barriers to capital flows will be reduced significantly, allowing funds to reach the worthiest projects. This generates innovation, economic growth, jobs and government revenue,'' she said.

ICHX Tech is backed by the Singapore Exchange and Heliconia Capital, among others.

Choo said public market returns are expected to decline over the long term. Institutions are able to diversify into private markets where access by individual investors is restricted. "ADDX was founded to change that. We refuse to accept a status quo of an uneven playing field, and we intend to partner with regulators and issuers everywhere to transform the investing landscape.''