Asset manager takes stake in equity crowdfunder

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A leading asset manager has announced its move into crowdfunding with a new investment.

Investec Australia Limited has announced it has taken a 20% stake in equity crowdfunding business Equitise. The stake makes Investec the company's largest shareholder behind Equitise's founders.

Equitise was established in 2014 and Investec said the company had worked in parallel with regulatory changes to bring equity crowdfunding to the Australian market after developing its business model in New Zealand.

“We are particularly attracted to the business model Equitise continues to develop, including the creation of a 'syndicate' investment platform that will allow groups of like-minded investors to create their own investor club for new investment opportunities – essentially taking the ‘angel investor’ model online,” Investec Australia CEO Milton Samios said.

“Investec has a strong history of asset and funds management and understands the power of distribution and capital intermediation. We see Equitise as an important part of the changes we consider are coming in this space, which will bring cost, time and administrative efficiencies to the process of bringing together providers and users of risk capital," Investec Australia head of direct investments David Philips added.