PE

ADDX, Fullerton partner to tokenize PE fund of funds

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Singapore-based private market exchange ADDX has partnered with Temasek subsidiary Fullerton Fund Management to list Fullerton’s private equity fund of funds (FOF) on its digital platform, ADDX said in a statement. 

See related article: Digital securities exchange ADDX join Investcorp to offer tokenized US real estate fund

Fast facts

  • The Fullerton Optimized Alpha Fund is a closed-end fund targeting 8% to 12% in returns per annum over its seven-year fund life.
  • The fund will be invested in a portfolio of six to eight private equity and private credit funds.
  • Improved efficiencies from tokenization enables accredited investors on ADDX to access the Fullerton fund at a US$10,000 minimum, instead of the US$250,000 on non-tokenized channels.
  • A liquidity option in the form of quarterly gated redemptions is available to investors.
  • “Adding a private equity allocation to one’s portfolio has been demonstrated to enhance overall returns while reducing volatility,” ADDX CEO Oi-Yee Choo said. “This is why institutional investors like pension funds typically have 20% to 30% of their capital in the private markets.” 

See related article: Singapore’s cult-favorite premium collectibles maker XM Studios finances expansion plans through tokenization



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