Investec Australia is aiming to harness the distribution power and capital intermediation capabilities of crowd-funding through its investment in Equitise.
The funds management firm announced it had taken a 20 per cent stake in the Trans-Tasman business.
Investec Australia head of direct investments, David Philips, said the firm had a “strong history of asset and funds management and understands the power of distribution and capital intermediation”.
“We see Equitise as an important part of the changes we consider are coming in this space, which will bring cost, time and administrative efficiencies to the process of bringing together providers and users of risk capital,” he said.
Investec Australian chief executive, Milton Samios, said Equitise had developed its business model in New Zealand, where legislation has been enacted to removed limits or caps on crowd-funding investment, enabling investors to control how much money they put into projects.
“We are excited about the ability to participate in the growth of equity crowd-funding in Australia and New Zealand via our significant stake in Equitise,” he said.
“We are particularly attracted to the business model Equitise continues to develop, including the creation of a ‘syndicate’ investment platform that will allow groups of like-minded investors to create their own investor club for new investment opportunities — essentially taking the ‘angel investor’ model on-line.”
Investec’s 20 per cent stake in Equisite makes it the largest stakeholders, behind the company’s founders, with H2 Ventures and Tank Stream Ventures also holding equity in the business.
