How to Invest

Syndex provides you with a secure and trusted environment where you’re able to directly trade with other registered investors or use the services of a broker or intermediary of your choice to trade on your behalf. In order to trade you must be a registered Syndex account holder.

Secondary Market

The secondary market consists of offers to the market from current holders of units or shares.

You can do research on the investment and decide whether or not its an investment you’d like to hold and that the offer price is a fair reflection of value.

If you decide you would like to make a bid on the offer, the process is very simple.

  1. Select the “Bid” button and complete the bid information
  2. Send your bid to the seller, bearing in mind that once you’ve done this, if the bid is accepted, you are contractually bound to complete and settle the transaction.
  3. The seller will either accept, reject or enter into negotiations with you.
  4. Once the seller accepts your bid, follow the settlement instructions

Primary Market

The primary market provides access to new syndicates and are identified by the “Apply” button as opposed to the “Bid” button associated with secondary market offers.

You can do research on the new offers and decide whether its an investment that’s of interest to you or not.

If you want to apply for an allocation, select the “Apply” button and complete the application process and send to the issuer.

Once the new offer has closed, you’ll be notified by the issuer and will generally receive your documentation via the Syndex Investor Portal.



FAQs

The concept of people pooling their financial resources and expertise to make an investment or acquire an asset for mutual benefit has been around for a very long time. This form of collaboration is usually called a syndicate and can be described as an association of businesses or individuals organised to undertake a joint project of common interest requiring considerable capital.

Syndicates 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 syndication that is growing rapidly around the world. Globally, crowdfunding platforms raised an estimated US$5 billion in 2013, and raised over US$9 billion in 2014.

Crowdfunding 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 branches 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 branches are Rewards crowdfunding and Debt crowdfunding or peer-to-peer lending.

In the wake of the GFC (Global Financial Crisis) and changing dynamics of the investment world, the profile of syndicates has grown as an investment option.

Interest has been driven by investor demand for steady income streams, higher yields relative to current bank deposit returns and the ability to “see and touch” the investment.

The costs are spread – making property and other syndicate assets of considerable value and scale more accessible and affordable and, in turn, lessening the risk to individual investors.

The property syndication sector has gained traction due to the tangible nature of ‘bricks and mortar’ investment. They’ve had a surge in popularity over the last few years and are a way for smaller investors to pool their funds to buy a large commercial property that would previously be out of their reach, often with proven tenants and without the burden of day-to-day management.

The worldwide trend of equity crowdfunding involves the sale of shares by early-stage companies, through one of the newly-launched services such as PledgeMe, Snowball Effect or Equitise.

Despite the proliferation in offers of shares, there is currently no independent, purpose-built exchange on which those shares can be traded. Syndex will offer investors in crowdfunding investments an exchange to trade them.

While common interests are central to the setting up of syndicates, circumstances will change and investors often wish to exit a syndicate for one reason or another, sometimes well before any agreed upon syndicate termination date.

In fact, most syndicates do not have a fixed term or redemption facility and that can create problems for investors wanting to exit a syndicate and cash up. Investors typically need to be prepared to have their money tied up in a syndicate for around five to ten years.

This lack of liquidity becomes a real barrier to an easy exit for investors.

In the property syndication market, investors get their money out when the underlying property is sold and the syndicate is wound up. But there is often no way of knowing when that will occur. Most syndicates require a vote by investors to be 75 percent in favour for a syndicate to be wound up.

Most syndication companies will try and arrange a private sale among their investor base for those who want to cash up early. While that may work well when syndicates face favourable conditions and there are few sellers and plenty of new investors coming into the market, it may be a different story if syndicates become relatively less attractive to other forms of investment, which could result in an increase in sellers and a decline in potential buyers, making it difficult for investors to cash up.

In contrast to other investment options, some syndication markets have been slow to adopt new technologies to enhance the investor’s ability to purchase, manage and trade assets. As a result, it can be difficult to obtain information on syndicate assets, with a lack of transparency, liquidity and price discovery.

For investors with multiple investments across syndicators, it can be time consuming and complicated to collaborate, share information and trade assets.

There are a significant number of vibrant alternative investment opportunities that are not available via mainstream or more traditional investment managers. These common-interest markets are fragmented, and have traditionally been difficult and time-consuming to access and participate in. There is often a lack of transparency, liquidity and price discovery.

New digital technologies are dramatically changing the investment sector. By enabling easy online access to new alternative markets from mobile devices, at any time and any place, investors can research and consider where to place their investment dollar.

We are sourcing opportunities from a range of syndicators to provide investors with a wide choice of investment options spanning commercial real estate, argiculture and forestry syndicate markets..

We’ve launched our Agri Syndicate Market offering investors the opportunity to buy and trade shares in syndicates from MyFarm, New Zealand’s largest agricultural investment company, with $550 million of farm assets under management.

We are also looking for quality opportunities in the private company equity and peer-to-peer lending markets.

Syndex is a marketplace where businesses and individuals investing in or offering proportionally-owned assets can get 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 latest syndicate 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 24x7 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.

By offering new syndicates or issues on Syndex, syndicators, issuers and third-parties like crowdfunders can tap into the growing demand for alternative investment opportunities.

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 syndicators, issuers and companies to the benefit of investors.

The benefits for syndicators and crowdfunders 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 help you make better and more informed decisions about your current and future offers. Combine this with real-time 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 real-time 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.

With an online exchange like Syndex, you do not need to download or install any software or applications. Syndex is hosted in the cloud and is accessible on any device, anywhere you have an internet or wireless connection. You simply login and make your offers or bids anytime, anywhere.