ADDX Singapore: Unlocking access to private market investments

My investment portfolio has been focused on stocks, bonds, and some mutual funds in the past. 

However, I noticed that in recent years, private market investments are no longer exclusive to institutional investors or the ultra-wealthy. 

As an investor in Singapore, I’ve often wondered how I could diversify my portfolio with private equity, commercial paper and hedge funds.

That’s where ADDX steps in, offering private market  investments that start at just a fraction of the usual entry cost.

In this review, I’ll dive into the platform’s offerings, user experience, and the types of investment opportunities available for accredited investors. 

Also, find out how you can claim an exclusive offer of S$150 in trading credits when you sign up with ADDX. 

What is ADDX Singapore?

ADDX is a MAS-licensed investment platform that offers access to private market investments in smaller investment amounts. 

Headquartered in Singapore, its shareholders include the Singapore Exchange (SGX), the Stock Exchange of Thailand, Temasek subsidiary Heliconia Capital, amongst others. 

Since its inception in 2017, more than S$1 billion has been raised on its platform. 

What you need to know about ADDX Singapore

#1 - Low investment minimums

One of the key advantages of ADDX is its approach to lower minimum investments, compared to traditional private investments.

You can access private markets in fractions with investment options starting from as low as $5,000. 

This means you can invest in smaller amounts, spreading your funds across multiple opportunities and effectively balancing risks and rewards.

#2 - Flexible entry and exit for private investments

ADDX investors can trade and cash out selected holdings, partially or fully, and potentially access closed opportunities for as low as US$100 via ADDX’s secondary trading platform.

Investors can trade with each other, rather than with the issuing entity and the prices of the investments are determined by supply and demand, allowing flexible investment strategies.

#3 - Broad diversity of opportunities

ADDX offers a wide selection of investment opportunities to invest in on a single platform, from venture and growth equity and infrastructure, to natural resources and real estate, across multiple industries and geographical regions.

Investors can pick from investment options like private equity, private credit, hedge fund, structured products, private estate, commercial papers.

With the flexibility of filtering based on asset class, target returns and investment focus (e.g. income, growth, or balanced), investors can create portfolios with a range of unique investment strategies, backed by renowned investment managers.

#4 - Platform listings screened and vetted

According to ADDX. it goes through a comprehensive review process that precedes the listing of any investment opportunity.

Before any offering is given the green light, their team - comprised of industry veterans with many years of experience - conducts a thorough evaluation of applications to ensure that issuers and offerings align with the fundamental requirements.

They encompass criteria such as the size of the investment or the track record of the company, all aimed at maintaining the platform's reputation, integrity, and bolstering investor confidence.

#5 - Costs and fees

You will not incur a fee to sign up on the ADDX platform. 

However, there will be a sales fee when you invest into a product, with the sales fee in a range of 0.1% to 2.5% of the total subscription amount. 

Here’s a tip: The sales fee as a percentage of the investment amount may be lower when you invest a larger amount. 

Is ADDX Singapore safe and legit?

In case you’re wondering if ADDX is safe, ADDX (ADDX Pte Ltd) is regulated by the Monetary Authority of Singapore (MAS). 

It holds a Capital Markets Services (CMS) license from the MAS, and is also a recognised market operator. 

What would Beansprout do?

Despite the potential diversification benefits that private market investments can offer investors, access to such opportunities may be limited in the past. 

ADDX offers accredited investors an opportunity to invest in private equity, private credit, hedge fund, structured products, private estate, commercial papers in fractions as low as $5,000. 

The team at ADDX has a screening process for good investment opportunities that leverages on their investment experience and industry network. 

The platform is regulated by the Monetary Authority of Singapore (MAS), and is open to all non-US individual accredited investors. 

If you are an accredited investor keen to try out the ADDX platform, you can receive US$150 worth of trading credits when you sign up here or via using the referral code BEANSPROUT.

Important Disclaimers

ADDX is open to non-US individual accredited, corporate accredited, and institutional investors only.   

The information herein is for general information purposes only and does not purport to be comprehensive or contain all the information that you may need or desire and has not been independently verified. This article does not constitute a recommendation, an offer to sell, or a solicitation to invest in any capital markets products in any jurisdiction and its content is not prescribed by securities laws. Neither this article nor anything contained herein shall form the basis of any contract or commitment whatsoever, and should not form the basis of any investment decision and should not be considered as advice or recommendation by ADDX to acquire any capital markets products. This information herein is not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject ADDX to any registration or licensing requirement in such jurisdiction or country.

Alternative investments in the private market are speculative and involve a high degree of risk. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Investors who cannot afford to lose their entire investment should not invest. Past performance is not an indicator nor a guarantee of future performance. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund. 

You should carefully consider whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources, investment eligibility and relevant circumstances. You are advised to exercise caution, read and understand the contents of this article, and obtain all necessary professional advice, before investing.

The information and analysis shared here is from Beansprout and not ADDX. ADDX does not accept any responsibility for, nor makes any representation, warranty or undertaking, express or implied, as to the truthfulness, accuracy, completeness, fairness or reasonableness of any information supplied in this article. ADDX shall not have any responsibility or liability (direct, indirect, consequential or otherwise) for the information contained in, or any omissions from, this article. Information may be subject to change without notice. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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