DIGITAL securities exchange ADDX has tokenised an allocation from a private equity fund managed by Partners Group, a move that helps individuals access a space traditionally dominated by institutional investors.

Launched in 2007, Partners Group's Global Value SICAV Fund has exposure to over 500 global private companies, with assets distributed across North America (43 per cent), Europe (40 per cent), Asia Pacific (13 per cent) and other parts of the world.

Tokenised units in this ADDX offering are part of the latest US dollar share class launched in January 2019, with a year-to-date performance of 12.7 per cent per annum (as of July 31, 2021). Annualised performance since its inception stands at 16.7 per cent per annum.

ADDX said the allocation size cannot be disclosed, noting also that the allocation would change from month to month, given that this is an open-ended fund. This means investors can subscribe for or redeem units on a monthly basis, which is unusual for a traditionally illiquid asset class.

Private equity funds are typically only accessible to institutions and high-net-worth individuals due to the high minimum investment requirement - usually US$100,000 or more - and long holding period.

Victor Jung, Partners Group's head of distribution partners and liquid private markets in Asia, said tokenisation marks a milestone for the private markets industry, and that his firm's partnership with ADDX contributes towards the "democratisation" of private markets.

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ADDX's chief commercial officer Choo Oi Yee said: "The benefits of tokenisation cut both ways, as fund managers are getting access to investor capital not available to them previously. When capital is allowed to flow unimpeded to the best-performing opportunities, the markets are in an optimal state.

"In the long run, we will see this new technology enhancing capital flows from the public markets to the private markets and redistributing wealth from institutions to individuals."