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ASX

ASX-listed HUB24 takes a chunk of investment fintech Reach Alternative Investments

- September 26, 2024 2 MIN READ
Sam Phillips, Jonathan Ng & Hugh McCaffrey
Reach Alternative's Sam Phillips, Jonathan Ng & Hugh McCaffrey
HUB24 (ASX: HUB) has ponied up with startup Reach Reach Alternative Investments with a strategic investment for a minority stake.

The teams of the deal were not disclosed, but earlier this year Reach had been on the hunt for $3 million at a $15m valuation.

The three-year-old Sydney fintech previously raised $2.2 million in a Seed round in April 2022, led by VC Carthona Capital at a post-money valuation of $11.2 million just eight months after it emerged from the Antler program.

Reach Alternative is a tech platform offering offering investments in global private equity and private market funds normally reserved for institutional investors. It also deals with the administrative and capacity issues faced by sophisticated investors, private-wealth groups and family offices.

HUB24 is itself a platform offering advisers and their clients a range of investment options, and plans to collaborate with Reach Alternatives and potentially other industry providers to co-design products to offer more alternative investment solutions.

HUB24’s director of strategic development Jason Entwistle said their investment aligned with the company’s strategy to collaborate in delivering solutions for emerging client needs.

“We’re delighted to be partnering with the team at Reach Alternatives who facilitate access to high-quality private market investments in Australia. Accessing institutional grade alternative investments has traditionally been difficult for advisers and their clients,” he said.

“Our investment demonstrates our ongoing commitment to delivering innovative products and solutions that enable advisers to empower better financial futures for more Australians.”

Reach Alternatives cofounder and CEO Sam Phillips said the partnership with HUB24 will help deliver high-quality alternative investments for Australian clients.

“This strategic investment validates our business and enhances our ability to scale and bring high-quality private market investments to a broader audience,” he said.

“Together, we are focused on delivering solutions that remove the barriers to private markets while offering HNW investors access to some of the most proven asset managers globally.”

Reach Alternatives has built strong relationships with global alternative asset managers to give investors access to global top-tier funds not generally available in Australia. They include EQT, PGIM, Apollo, TPG, BlackRock and Bain Capital.