Recompound, an Indonesia-based investment advisory startup, has introduced a performance-based fee model for retail investors, adopting a structure more commonly used in institutional investing.

In a release in late April, Recompund said the approach comes as structured portfolio management in Indonesia remains largely limited to high-net-worth individuals. The new model uses a high-water mark structure, indicating that the company only earns fees when a client’s portfolio exceeds its previous peak value, aligning compensation with long-term portfolio performance.

Formal investment frameworks such as Kontrak Pengelolaan Dana (KPD) typically require minimum investments of around IDR10 billion ($575,555), making structured portfolio management inaccessible to most retail investors.

Indonesia’s retail investing sector has grown rapidly in recent years, driven by wider access to brokerage platforms and increasing financial awareness. However, this expansion in participation has not consistently resulted in more structured investment outcomes, leaving a gap between market access and portfolio management quality.

Recompound said it is seeing rising demand for more structured investment approaches. “The growth reflects a segment of investors who are moving beyond access and looking for more structured approaches to managing capital, as rising participation has not always translated into more consistent portfolio outcomes,” said Toby Limanto, co-founder of Recompound.

While performance-based fee arrangements exist in Indonesia, they are generally informal and trust-based. Formal structures such as KPD remain restricted to investors with significantly higher capital.

Recompound operates as an advisory layer rather than an asset manager, with client funds held in individual brokerage accounts. The company was founded by Toby Limanto, a former Goldman Sachs analyst, and Budi Ryan, a data scientist from GoTo Financial. It raised seed funding in October 2024 from Genesia Ventures, STRIVE, and a group of angel investors.

The current model builds on the founders’ earlier platform, StockPeek, launched during the 2021–2022 retail investing surge. The team later shifted focus toward portfolio-level advisory services after identifying a gap between increased market participation and consistent investment outcomes.

The development reflects a broader trend in Southeast Asia’s retail investing landscape, where growing participation is driving demand for more structured portfolio management solutions beyond basic trading and stock selection.

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