Singapore-based technology-focused, family office for entrepreneurs Aument Capital Partners (ACP) and investment platform StashAway have announced a collaboration that will go towards democratizing access to private market investments.
Through this partnership, ACP will leverage StashAway’s private market offering, enabling its clients to invest in funds from world-class private equity managers, including KKR, SilverLake, and Khosla Ventures, the duo said in a statement on Wednesday.
According to the statement, private equity (PE) and venture capital (VC) have emerged as compelling alternative investments.
On average, PE outperformed public equities by 4.4 percentage points per year, with the outperformance increasing to 6.6 percentage points during the bear market periods of 2002-2003 and 2008-2009.
However, PE or VC funds often have high capital requirements ranging from $250,000 to $1 million per fund, making it challenging to gain diversified exposure to private markets.
With a shared commitment to putting clients’ interests first, ACP and StashAway have collaborated to lower the barriers to entry into private equity investing.
The duo noted that even for individuals of ultra high net worth, it can be challenging to put together a diversified portfolio of private equity investments.
By tapping into StashAway’s offering, they said clients of ACP are able to build a much broader and robust private market portfolio than what would previously have been possible.
“We are excited to join forces with StashAway, as our shared investment philosophy and dedication to maximizing value for our clients align perfectly,
“This partnership empowers us to modernize family wealth management by combining our deep understanding of complex client needs with StashAway’s exceptional technology-driven approach,” said Dominic Schacher, Chief Executive Officer of Aument Capital Partners.
Meanwhile, StashAway Chief Executive Officer and Co-Founder Michele Ferrario said that as private markets become increasingly integral to the global economy, many investors remain underinvested and under-diversified in this aspect.
“Our collaboration with Aument Capital Partners is a significant step towards simplifying access to such investment opportunities,
“Now, investors can navigate private markets in a way that’s right for them – with the trusted expertise of their family office, facilitated by the StashAway platform,” he said.
According to the statement, ACP and StashAway will also collaborate to alleviate the need for excessive pre-funding.
To mitigate the risk of capital call defaults, the duo opined that private market funds often require investors to put down significant sums of capital, which may be held in reserve for years before being invested.
Through the partnership, they said clients will be able to use existing investment assets as collateral, thereby minimizing pre- funding and the opportunity costs associated with excess idle funds.
This partnership also signifies a milestone in the world of wealth management, as it marries the expertise of a family office with the innovation of a fintech platform.
Combining ACP’s tailored wealth management services with StashAway’s user-centric platform and seamless access to top-tier funds, this joint offering presents a comprehensive package for investors seeking customized wealth management
solutions.
StashAway’s PE and VC investment solutions are also a part of StashAway Reserve, an offering designed specifically for accredited investors.
StashAway Reserve offers access to PE, VC, angel investing, crypto, and wealth advisory services.
StashAway is an investment platform that offers investment portfolios and wealth management solutions for both retail investors and high-net-worth individuals (HNWIs) and operates in Singapore, Malaysia, the Middle East and North Africa, Hong Kong, and Thailand.
ACP is an investment planning firm specializing in family wealth management.
With a strong focus on personalized and holistic financial strategies, ACP serves high-net-worth individuals, family offices, and institutional clients, ensuring the preservation and growth of generational wealth.
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