Global asset manager Schroders has announced a partnership with ADDX, a Singapore-based private markets and alternative investment platform, broadening access for accredited investors with a semi-liquid global private equity strategy.

Schroders said in a statement on Monday that the collaboration will provide investors with unique access to a differentiated private equity opportunity, with a focus on the lower mid-market segment where market inefficiencies can be exploited.

This approach enables the Schroders Capital private equity investment team to tap into a larger opportunity set with attractive entry prices, transformational growth opportunities through value creation and low reliance on financial engineering.

The investment strategy encompasses global private equity markets, with significant exposure in Europe and the United States.

While the allocation to Asia and other geographies is lower, the approach reflects a greater emphasis on growth investments in these markets.

From a sector allocation perspective, the strategy is broadly diversified across five industry sectors, namely healthcare, technology, consumer, business services
and industrials. 

Leveraging Schroders Capital’s 25-year network with over 400 General Partners (GPs), this extensive GP network provides exclusive access to transactional deal flow for investors,
where over 60 oercent of the network is access-restricted.

It is noted that the Schroders Capital private equity team invests primarily in direct/co-investments and GP-led secondaries, providing high fee efficiencies for the strategy.

As of June 2024, Schroders Capital manages over $19 billion in private equity investments for clients globally.

“As we strive to pioneer innovative private asset solutions and democratize private markets for private clients, we recognize the growing importance for investors looking to access non-listed companies with attractive growth potential,” said Szu Yi Chin, Head of Wealth & Product, Asia Pacific, Schroders.

According to her, the firm’s collaboration with ADDX enables the launch of Schroders Capital’s semi-liquid global private equity strategy on their platform, delivering a compelling solution for sophisticated investors seeking portfolio diversification.

“Small and mid-buyouts significantly enhance a private equity portfolio, offering historical resilience during market disruptions and consistently outperforming larger buyouts with lower reliance on leverage,

“Their ability to sell to larger private equity firms augments exit options, and reduces dependence on initial public offerings (IPOs), contributing to risk diversification and potentially greater returns for investors, making them a strategic component of a robust investment strategy,” said Inmoo Hwang, Co-Founder and Group Chief Financial Officer, ADDX.

“Our partnership brings together the strengths of a trusted investment manager with the innovation of a digital wealth platform, creating a powerful synergy to offer investors a
smarter, more accessible investment solution to help them reach their financial goals,” he added.

Schroders is a global investment manager which provides active asset management, wealth management and
investment solutions, with £773.7 billion ($978.1 billion) of assets under management at June 30, 2024.

As a United Kingdom-listed FTSE100 company, Schroders has a market capitalization of circa £6 billion ($7.75 billion) and over 6,000 employees across 38 locations.

Schroders Capital is a platform provides investors with access to a broad range of private market investment opportunities. Its assets under management stood at $97.3 billion.

ADDX is a global private market exchange headquartered in Singapore.

The full-service capital market platform has raised a total of $140 million in funding since its inception in 2017, including $50 million in its Series A round in January 2021 and $78 million in its Pre-Series B round, which began in May 2022 and was extended in November that year.

Its shareholders include Singapore Exchange (SGX), the Stock Exchange of Thailand, Temasek subsidiary Heliconia Capital, the Development Bank of Japan, UOB, Hamilton Lane, Tokai Tokyo Financial Holdings and KB Securities, a subsidiary of Korea’s largest banking group KB Financial Group.

ADDX has been approved by the Monetary Authority of Singapore as a recognized market operator.

It also has a capital markets services license to deal in securities and collective investment schemes as well as to provide custodial services.

It currently serves individual accredited investors from 39 countries spanning Asia Pacific, Europe, Middle East and the Americas (except the United States).

ADDX also serves wealth managers and corporate investors through its institutional service, ADDX Advantage.

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