Until now, access to exclusive institutional-grade private equity funds managed by the world’s leading asset managers has typically been limited to large institutions and the ultra-wealthy.
It is telling that many of the largest and most successful fund managers in the world do not have brands known to even the most active individual investors in Australia.
After working in the financial markets for many decades, Sam Phillips saw an opportunity to democratize access for Australian sophisticated investors seeking entry into this world. He believed that diversified private equity investment opportunities with top 20 global fund managers with a long track record was an excellent starting point to found his startup, Reach alternative investments†
“These opportunities were only available to institutions that were willing to meet a minimum investment requirement of $10-50 million, which is way out of reach for most individual investors. It’s all reflected in the name ‘private equity’ private because it’s a closed shop,” he said.
“The combination of our relationships and the technology we have applied to this issue has allowed us to access these types of funds and connect them to Australia’s advanced capital pool of investors.”
Access to better deals
Phillips, along with co-founder Hugh McCaffrey, launched Reach Alternative Investments last year with the goal of giving sophisticated investors and their advisors access to these deals.
They can do this by aggregating their investors’ individual demand to meet the institutional entry threshold, reducing the individual minimum investment to just $75,000.
In addition, Reach has partnered with one of Australia’s leading private equity voices, the Australian Investment Council, to create an education center to help investors new to this space with resources to help them operate effectively in this space. to invest.
“Our concept is very new in Australia and we are committed to raising awareness of our proposition, which in itself is a sign of how established the status of allowing institutional access only has been,” Phillips said.
“However, with a proven model that has achieved success abroad, we have had very good buy-in. After 20 years abroad, I had seen how private markets were democratized with technology elsewhere.
“Here, the industry has remained very paper-based. We provide much-needed onboarding and transaction efficiencies with our technology, which is a big win, especially for advisors who just don’t have the time.”
Phillips joined Antler last year as an early stage VC incubator that empowers and invests exceptional people to build tomorrow’s defining companies, in an effort to help find a partner to realize its vision and set a clear path. to provide capital.
“Antler has been great. I’ve been in the industry for a long time, when I came back to Australia I wanted to do things all over again. Antlers fit us perfectly respect,” he said.
“I had the vision and understanding of the industry, but I didn’t have the operational or technical support to bring it all together. Antler has allowed me to work with my co-founder and COO Hugh McCaffrey who has extensive legal experience, over time we have gained very solid traction and expanded our offerings so it has been fantastic.”
Since its launch, Reach has added significant weight to its go-to-market executive and added new names to its already highly experienced advisory board, including Lee Porter of Liquidnet, Guy Saxelby of Earlytrade, technologist David Jenkins and Antler’s Ant Millet.
The most recent hires include a Head of Technology, CMO & Director of Corporate Affairs, a specialist Private Equity Analyst and a Graphic Designer.
“We’ve grown our team and built a brand and culture that demonstrates our commitment to responsibly operating our business to gain the trust and credibility of a proudly conservative industry without the vibrant drive and energy of a startup on sacrifice,” Phillips said.
Looking ahead, Phillips adds that Reach is “leading to a timely change in the investor landscape” as the post-Covid economy awakens.
“With expected interest rate hikes and forecast volatility in stock markets, we see many investors looking to diversify outside of listed markets. Institutional grade private equity funds are generally illiquid, often with maturities of 3-10 years,” he said.
“We usually see that adding some illiquid private market investments to a portfolio can lead to better diversity, some degree of outperformance and also dampen volatility. It is very good timing for us”
Phillips said that as financial services regulation continues to change, Reach sees itself as a leader in meeting growing demand for private equity.
“We can apply a robust scalable model, secure technology and extensive experience and networks to narrow the gap between what institutions have at their disposal and what advanced investors have at their disposal. Perhaps our model also has the potential to benefit retail investors over time,” he said.
“Now is the time to do well in Australia and then look at other markets that are ripe, because every country has a potential market for this caliber of opportunity”
- Startup Daily is Antler’s Official Media Partner in Australia