Syndex: digital technologies

Syndex: digital technologies

Auckland-based Syndex is New Zealand’s first online exchange for proportionally-owned assets — a marketplace for individuals who invest directly in alternative investments held in proportional ownership structures.

Syndex is accessible using standard browsers on any device. It provides a range of services that allow investors to manage their investments and trade on the Primary and peer-to-peer Secondary Market, and explore offers on the Investment Opportunities Market.

Online trading platform, Syndex, has three quarters of a billion dollars in funds under its administration since it was launched in 2015.

Syndex Managing Director Ross Verry, pictured above, says the company’s mission is to use digital technologies to deliver private market infrastructure that promotes and enhances transparency, liquidity, independence and price discovery.

“At Syndex, we aim to make, interesting, alternative investments, more accessible and investable for investors. So we offer a secondary market for liquidity and price discovery, and an investor portal to facilitate communications, to track investment performance and valuation information. 

“We also want to provide a pathway to access capital for privately-owned businesses that operate in many key sectors, addressing many of the capital challenges that they have previously faced. The platform can connect them to a wider pool of investors, even skills-based investing,” he says.

In addition to creating a marketplace for primary fundraising and secondary trading, Syndex was also set up to help syndicates administer their investments.

“They can manage their syndicate on the platform,” Ross says. “We offer governance and administrative services and want to provide a place for investment communities on the platform.”

Syndex has a growing number of proportional specialist syndication companies on the Public platform such as MyFarm and Silverfin.

“These are large companies who have specific investments coming up regularly. They see value in Syndex managing everything in one place, including providing a secondary market, when investors decide they want to sell. Within their own environments they can’t do this,” Ross says.

“Since we started in 2015 a lot has been happening. We now have over three quarters of a billion dollars in funds under administration and have already facilitated over half a million dollars in purchases on our secondary market”.

“What we love about our innovation is that we are genuinely supporting the backbone of the New Zealand economy. We will find the investments you’ve dreamed of, that give you a slice of real NZ,” says Ross.

Syndex also offers private instances for proportionally-owned businesses. This includes a proposition for Co-ops to help manage their own share registers, communicate with their members and efficiently administer corporate actions utilising digital technologies. Shareholders or members can manage their holdings through a portal and have an on-line ability to buy or sell shares, if, for example they have to match shareholdings in order to supply.

“The Co-operative economy has been good to the New Zealand economy and society for years. We want to facilitate co-operation and collaboration within our key industries and capital markets so we want to support Co-operatives and members wherever we can”.

Frequently asked questions

The Investment Opportunities Market if for Issuers who are offering you an opportunity to invest in a new offer, the unit or shares of which are yet to be issued.

These offers could range from a simple gauging of investor interest in an intended investment initiative, through to subscribing for an allocation of units or shares in a capital raising initiative.

The underlying process for this market would be an expression of interest participate or acquire a quantum of units or shares in the Issue. The expression of interest process is typically coordinate via a professional intermediary working on behalf or in conjunction with the offering Issuer.

The Secondary Market presents offers from investors that are currently invested in Issues listed on Syndex.

Issuers who list their Issues on Syndex are required to make disclosure information available for the purposes of trading on the Secondary Market. The disclosure information is provided to the market to support the decision making process for trading purposes and typically includes quarterly reports, product disclosure statements and trading history.

The Primary Market is for new Issues that are being offered to the market by Issuers, or for existing Issues that have issued new units or shares.

Issuers are required to provide disclosure information in the form of an Information Memorandum or Product Disclosure Statement, and any other documents that will support the decision making process in terms of acquiring units or shares in the Issue.

As a registered Account Holder, you are able to use a simple, digital process to apply for the units or shares on offer without needing to complete either the Anti-Money Laundering or investor certification processes.

Syndex’s only role is to provide a common, go-to place for investors that have an interest in investing and trading in proportionally-owned assets. Syndex doesn’t create or offer any kind of investment product to the market and is totally committed to working collaboratively with Issuer’s to the benefit of investors.

The benefits for Issuers include:

  • Liquidity: Easy access to secondary markets for your investors increases their opportunities to sell their assets, improving the attractiveness of proportionally-owned investments.
  • More informed decisions: Insights and analysis support more informed decisions about your current and future offers. Combine this with client collaboration to gain even greater insights and, ultimately, increase sales.
  • Secure and trusted: Peace of mind knowing that counterparties comply with ‘Know your Client’ (Anti-Money Laundering) processes.
  • Speed and reliability: Fast, fair, orderly and transparent settlements, plus alerts that let you send information to investors to ensure you meet your legislative and regulatory obligations.
  • Extend your reach: Tap into Syndex’s communities of like-minded investors to extend your access to and communication with prospects and investors.

Syndex is a marketplace where organisations and individuals investing in or offering proportionally-owned assets can access the infrastructure and tools that enable them to easily communicate, manage and trade their assets.

The benefits for investors include:

  • Liquidity for easy entry and exit: Access to a wider choice of investment opportunities, with a secondary market that ensures you can easily cash up at a time that suits you.
  • More informed decisions: Trade with confidence using price discovery and access to the Issue’s latest news, as well as rich reports on portfolio and asset performance. Our market alerts ensure you are always up-to-date with relevant market activity.
  • Convenience of completing identification process just once: Reduce time and effort by completing the ‘Know Your Client’ identification process online. You are then free to trade any exchange assets without having to repeat the process.
  • Secure and trusted: Peace of mind knowing that counterparties comply with ‘Know your Client’ (Anti-Money Laundering) processes.
  • Speed and reliability: Settlement processes ensure that trading and settlement is fast, fair, reliable and available 24×7 anywhere, on any device.
  • Communities of like-minded people: Collaborate, share information and trade assets with investors that share your interests, and take advantage of our full suite of social tools to connect with your peers and service providers in real time.

Proportional ownership is the concept of people pooling their financial resources and expertise to make an investment or acquire an asset for mutual benefit.

Proportional ownership schemes have been formed to invest in anything and everything ranging from real estate and aircrafts, to horses, boats, forestry, patents and, of course, start-ups or early stage companies.

Crowdfunding is another form of proportional ownership that is growing rapidly around the world and operates by many people (the crowd) contributing relatively small amounts of money to support a business or project.

Equity crowdfunding is one of the three main categories of crowdfunding, and is designed to raise growth funds for businesses. Once they’ve invested, investors typically hold a share of the company.

The other categories are Rewards and Debt crowdfunding.

Here at Syndex we refer to all the different types of proportional ownership schemes simply as “Issues” as this term fully encompasses the wide variety of investment structures across the Primary, Secondary and Investment Opportunities Markets.