Alternative investment platform Shuttle has been given authorisation by the Central Bank of Ireland to provide potential small investors with simple access to new markets.
The company, which was formerly known as PitchedIt, was founded by Rob Halligan and Scott Ashmore to help retail investors build a diversified portfolio of private market investments through a subscription model. The platform aims to remove the burden on potential investors by automating the process, removing the jargon, and lowering the capital barrier.
Customers invest a minimum of €250 per quarter through their digital wallets, with a €250 annual fee paid on each account and a 10 per cent performance fee.
The initial investment plans will offer “high quality” investments in tech start-ups across Europe, with plans to expand into other private market asset classes, the company said. The first 100 users will get access to the platform in October, with more investors brought on in stages through a wait-list on its website.
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Shuttle has spent almost two years working on the Central Bank authorisation, and has now been given a crowdfunding service provider license under new EU regulations, which allows it to support all retail investors investing in private companies. However, it plans to seek authorisation under the Markets in Financial Instruments Directive (MiFID) in the next two years, which will allow it to eventually offer investment funds to its clients.
“We could have looked at getting authorised elsewhere in Europe, which we were told would have been easier and quicker but we wanted the CBI’s rubber stamp,” said Mr Halligan. “It’s well known that they’re the gold star when it comes to regulation in Europe, and we think it will help show just how dedicated we are to building a safe and trustworthy business.”
Private market asset classes include venture capital, private equity, hedge funds, private debt and real estate. However, although there has been a shift to invest in publicly listed assets – stocks and bonds, for example – by retail investors, efforts by some asset managers to open up private assets to more investors are often concentrated on higher net worth individuals, Shuttle’s founders said.
“Regulation, closed networks and high capital requirements keep the majority of retail investors [individuals] locked out. But we’re starting to see a shift in behaviour”, said Mr Ashmore.
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