Capital Springboard Introduces New Alternative Finance Fund in Singapore
SINGAPORE, November 7, 2016
Capital Springboard Pte Ltd, a peer-to-peer invoice financing platform for accredited investors, has transacted over SGD$110 million on its platform since its’ pilot testing phase. Launched in June this year, Capital Springboard has garnered strong interest amongst accredited investors and local small and medium-sized enterprises (SMEs). Capital Springboard announced today the introduction of the Pentad Capital Springboard Class for accredited investors in Singapore, through its partnership with Centurion Portfolio Managers. The fund provides exposure to Capital Springboard’s platform via a Cayman Administered fund structure.
“The feedback we have been receiving from investors and SMEs have been extremely encouraging. Investors are continually searching for yield and we’ve provided them a platform that not only provides quality investment but one that diversifies risk across their investment portfolio. Investors on the platform can manage their investment portfolio and risk allocation using our autoinvest technology or manually. Accredited and institutional investors on our platform are making returns of over 20% per annum. Presently, we see an increase in transaction volume of 8 – 10% monthly and I expect this to continue growing by over 150% in the next twelve months. We are committed to delivering a good investment portfolio for our investors and delivering good quality service to qualified SMEs.
Given the growing interest for alternative finance in Singapore, we have partnered with Centurion Portfolio Managers to introduce the Pentad Capital Springboard Class for accredited investors. The new fund is open for subscription and is well-suited for investors looking for managed receivables allocation with high returns to include in their existing portfolios. Capital Springboard is the sole asset within the class, allowing us to provide investors with up-to-the-minute performance snapshots. This is in line with our track record of providing our investors with consistent returns,” said Roger Crook, CEO, Capital Springboard.
In recognition of the success of the platform, Capital Springboard was awarded for “SME Excellence” during the 17th Annual Business Awards by the British Chamber of Commerce and has expanded its’ team in Singapore to cater to the expanding business and client requirements.
Investors on Capital Springboard’s platform include Singaporeans and expatriate high-net-worth-individuals (HNWIs) primarily from Independent Financial Advisors (IFAs) and family offices. Capital Springboard has financed over 1,550 invoices to date from SMEs. These SMEs are from local primary sector industries such as engineering, consumer discretionary, information technology and industrials.
Capital Springboard facilitates trade for SMEs by granting them access to working capital provided by investors. SMEs would have to be Singapore registered and in operation for at least a year, with a minimum turnover of SGD$100,000 per annum. Up to 70% of SME applications are accepted in line of a firm commitment to maintaining the quality of investments. Investors benefit from annualised returns of 11- 25% depending on the grade of risk of the invoice, during a 90 day investment window. Invoice sizes range from a few thousand dollars to few hundred thousand dollars.
In addition to stringent credit screening and debtor rating procedures, the technology being used to disperse risk, known as the automatic investment process mechanism, involves the fractionalization of invoices through algorithms across investors. This leads to proportional investments made across multiple invoices. To maintain the quality of investment, such methodologies effectively minimise the risk involved. Accredited Investors can open a Capital Springboard trading account held by escrow agent, Vistra Trust (Singapore) Pte. Limited, with a minimum investment of SGD$50,000 and withdraw their undeployed funds at any time. Vistra Trust is regulated by the Monetary Authority of Singapore (MAS).