Yangzijiang Financial, a Singapore-incorporated financial company engaged in investment management, and ADDX, a private market exchange, have signed a Memorandum of Understanding (MOU) to distribute Yangzijiang Financial's capital markets products. The maritime fund, Yangzijiang Maritime Private Equity Fund #2, has a target fund size of US$600 million and has secured capital commitments of US$500 million. In addition, the group will be establishing a cash management fund with a target fund size of S$200 million. The ADDX platform will serve as an additional distribution channel for the funds managed by the Group, broadening the Group's investor reach and boosting its total assets under management (AUM).
ADDX aims to democratize private markets by connecting accredited investors to a selection of private market investment opportunities, including hedge funds, private equity, private credit, real estate, venture capital, debt, and structured products. The platform uses blockchain and smart contract technology to reduce manual interventions in the issuance, custody, and distribution of private market products. ADDX has listed more than 60 deals on its platform and worked with blue-chip names such as Hamilton Lane, Partners Group, Investcorp, Singtel, UOB, CGS-CIMB, Mapletree, Azalea, SeaTown, and Fullerton Fund Management.
The full-service capital market platform has raised a total of US$140 million in funding since its inception in 2017 and is backed by entities including the Singapore Exchange, the Stock Exchange of Thailand, Temasek subsidiary Heliconia Capital, the Development Bank of Japan, United Overseas Bank, Hamilton Lane, Tokai Tokyo Financial Holdings, and KB Securities.
The partnership with ADDX is expected to extend the breadth and scope of Yangzijiang Financial's capital markets products, thanks to ADDX's wide-ranging network. The collaboration will add another distribution channel for the funds, allowing the Group to reach a much wider investor base, increase its AUM, and boost its recurring management fee-based income. In a time of unprecedented volatility and declining returns in the public markets, investors need diversification into private markets more than ever. ADDX is committed to transforming the investing landscape and signing this memorandum of understanding brings it a step closer to that goal.
