TBL Capital launches platform for man in the street to access private equity market

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July 7, 2015
TBL Capital launches platform for man in the street to access private equity market

The Private Exchange, or PEX, was established to give the man in the street a platform to participate in private equity. Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. A private equity investment will generally be made by a private equity firm, venture capital firm or an angel investor. This form of investment has traditionally only been available to the wealthy and institutions such as investment banks.

According to the Southern African Venture Capital and Private Equity Association (SAVCA), despite the backdrop of significant volatility across all investment markets during 2014, South African private equity funds continued to offer relatively strong performances. Particularly pleasing for private equity investors is the reported overall headline return for the ten years to December 2014 of 19.1%, which outperformed major listed-market indices for the same period, including the FTSE/JSE All Share Total Return Index (ALSI TRI).

It is clear that the traditional players in the private equity field have been consistently achieving solid returns on their investment with the likes of investment banks making astronomical profits in this field which has outstripped all other investment classes.

PEX is addressing this imbalance by giving the man in the street an opportunity to be involved in this market without the need of large amounts of capital. We do this through the formation of investment clubs. These clubs are for individuals that know each other or individuals can elect to become members of clubs with persons not know to them. PEX assists in the formation of both types of clubs and the investment clubs are incorporated as private companies with the maximum number of members per club will be 10. All this is managed over all by corporate finance experts TBL Capital.

Applications for investment clubs are now open and interested individuals and groups can contact the exchange administrator Robin Botha via email robin@private-exchange.co.za.

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