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The attraction of private capital raising in today’s public market climate

Raising capital is a matter of course for any growing business. Capital required for ongoing growth, research and development, diversification etc. is part of pushing your business to the next level. Your cash flow demands could be fortuitously met by friends and family, or you could have the big guns out ready to launch an IPO and journey to the NZX. If the latter is your ultimate goal, you’ll need to start with private capital first and slowly work your way to finally being ready to take that big step.

Syndex offers a platform for the management and trading of proportionally-owned investments for private capital markets. The service provides support for both Issuers of, and investors in syndicates, limited partnerships and private equity. In offering a transparent, accessible and reliable place to hold investments throughout their lifecycle, it’s a great way to engage with investors while giving them the disclosure, governance and security they demand and are entitled to.

Syndex believes that their investment platform acts as a nursery for businesses that aspire to being listed on a public market by requiring business owners and boards to professionally engage with new external investors, under a lighter burden of disclosure than they’ll be subject to once they are listed on a public market. This creates an opportunity for company boards to become match-fit from a governance perspective and ensures that the right culture within the business is nurtured at an early stage.

Businesses that choose to remain privately-held can remain on the Syndex platform for as long as they like and should the need to raise additional capital arise, they’re able to use the private Syndex communities for that purpose. IPO’s are not for everyone and have indeed been in decline for the last couple of years. Many businesses see the benefits of remaining as a private company; the flexibility, quicker turnaround of funds, less stringent regulations and having the ability to choose investors with similar objectives, expectations and even shared knowledge.

Syndex is fit-for-purpose for all businesses, no matter how big or small, from startups through to mature companies, taking care of governance, shareholder registry, shareholder engagement and even running your employee share scheme.


Mike Jenkins

Mike Jenkins is an Executive Director of Syndex and a shareholder. The views expressed above are purely his own. Please assess and research all your investment.