The investment also marks the strategic partnership between the two companies, seeking to grow the private market ecosystem for both countries
Singapore private markets platform CapBridge Group just announced that it has partnered with South Korea-based Hanwha Investment & Securities Co., Ltd. (“Hanwha”). The partnership saw Hanhwa investing US$4 million for a stake in the company.
CapBridge provides a platform called 1exchange (“1X”), a regulated private securities exchange that facilitates pre-IPO, family-owned businesses, and growth-stage companies to match with international investors. Private companies can access integrated solutions to access private markets for capital, as well as a liquidity pathway that ensures control via a private listing on 1X.
With the partnership, private businesses in South Korea and Asia can now work with Hanwha and the CapBridge private markets platform.
Investors seeking higher-than-average returns from private equity will also be able to access such opportunities via the CapBridge private markets platform.
With CapBridge, individual investors can gain access to private equity via the Preferred Access route, from as low as S$5,000 (US$3,600). The purpose is to enable individuals to commit smaller investment amounts across multiple deals as a way to diversify portfolios.
CapBridge operated as private securities exchange a Recognised Market Operator (RMO) since 1exchange was approved by the Monetary Authority of Singapore in 2018, which was reported by e27.
Hanwha is a part of South Korean multi-profile business conglomerate Hanwha Group that provides comprehensive asset management services, including brokerage and acquisition of stocks, bonds, and derivatives.
With the partnership, Johnson Chen, founder, and CEO of CapBridge, said that the company plans to offer more private markets opportunities to companies and investors in South Korea.
Kwon Hee-baek, CEO of Hanwha Investment & Securities, said, “With this partnership, we will collaborate with CapBridge and the private securities platform 1exchange, to introduce private markets opportunities to our customers across the region. We are expanding our global digital business and look forward to extending our footprint further in South Korea as well as the growing Southeast Asia private markets.”
According to a McKinsey & Co report, the private equity market in South Korea is the third-largest in Asia and poised for more growth. Global and local acquisitions and private capital committed have been steadily increasing, and returns from private equity have significantly outstripped the public market.
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Image Credit: CapBridge
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