[39] Alta Views: your latest scoop of Private Capital Markets

Hi Alta-natives! In our latest edition of Alta Views, we are thrilled to share that we have completed the the inaugural trade for the first tranche of shares from Income Insurance Limited (Income Insurance) shareholders.

The trade was part of the Income Insurance Share Liquidity Program launched by Alta, through Alta’s exchange arm AltaX, and Phillip Securities Pte. Ltd in January this year. The program provides a liquidity solution to almost 16,000 shareholders holding shares valued as much as S$840 million (US$619 million).

In addition, join us as we delve into the latest developments surrounding secondary markets, Open AI's latest partnerships with Financial Times and Apple and the significant growth in global payments.

AltaX debuts inaugural trade from Income Insurance shareholders

• The inaugural trades are part of the Income Insurance Share Liquidity Program launched in January 2024 by Alta and PhillipCapital for Income Insurance shareholders
• The program provides a liquidity solution to almost 16,000 shareholders holding shares valued as much as S$840 million (US$619 million) and marks the largest listing of a non-listed company on a private market digital securities exchange.
• Investors will be now be able to trade these shares seamlessly on AltaX, taking advantage of the digital exchange’s market participants, which includes an active global community of traders and market makers.
• Additional windows for Income Insurance shareholders to sell their shares to PSPL will follow this first window, later this year.

The Secondaries Market Continues to Shine

• 2023 was a promising year for the secondaries market. Secondary volumes reached the second largest amount on record, growing from $40 billion in H1 2023 to $71 billion in H2. This fundraising success, against the backdrop of an extremely challenging exit and distribution environment more broadly, supported a record $174 billion of dry powder available at the beginning of 2024
• While M&A and IPO alternatives will compete with the secondary market for volume, the reemergence of “traditional” exits can be a boon for GP-led secondaries, as a healthy exit environment and valuation comps support constructive underwriting and strong pricing for high-quality companies. William Blaire expects secondary market activity in 2024 to approach the record levels seen in 2021, with a near even split between LP and GP-led volume
• Additionally, secondary markets database Caplight’s Q1 2024 report reflected closed trade volume for pre-IPO secondaries doubling January to February, doubling again February to March. The report highlighted the expanding market breadth - for the first time in 4 quarters closed trade volume in the top 5 companies was <50% of total volume, and only 2 AI companies were in the top 10 traded companies.
• Private market investors can expect abundant opportunities to purchase stakes in high growth pre-IPO companies through this booming asset class

OpenAI Opens Doors for 2 Mega Partnerships

• The Financial Times (FT) has just struck a deal with OpenAI to license its content and develop AI tools, the latest news organization to work with the AI company
• The agreement will enhance OpenAI’s generative AI chatbot ChatGPT with attributed FT content, and the firms will collaborate on developing new AI products and features for FT readers. The partnership also lets ChatGPT use select summaries, quotes and links to FT’s stories on its chatbot
• Meanwhile, Apple and OpenAI resumed talks on integrating generative AI capabilities into the new iPhone and iOS 18, the next iPhone operating system. Talks about a potential deal began earlier this year, as Apple has been seeking partners to power a chatbot-like feature akin to OpenAI’s ChatGPT
• The FT deal is the fifth such deal to be struck by OpenAI over the past year, following similar agreements with the US-based Associated Pres, Germany’s Axel Springer, France's Le Monde and Spain's Prisa Media. With 5 closed deals and a mega-partnership in talks, momentum is on OpenAI’s side

A Hospital in Singapore is “opening” before opening

• The Singaporean Ministry of Health (MOH) has officially broken ground on a new medical campus in eastern Singapore. To be located next to the downtown line of the Bedok North MRT station, the Eastern General Hospital (EGH) Campus is expected to have ~1,400 beds upon its completion in 2030
• Though expected to physically complete by 2030, it intends to run virtual wards by 2026 to support the already overwhelmed Changi General Hospital (CGH). The EGH team will be initially hosted at CGH where they can tele-consult, conduct remote monitoring, and move out to the community and into patients’ homes to deliver care
• This move is part of a broader initiative by the MOH to bring hospital-level care to the home. 15 more hospitals would be required by 2030 to accommodate for the current rate of hospitalization increase, which is physically impossible to achieve. Additionally, it is notably cheaper to home-ward than to hospital-ward for certain illnesses like dengue, for which warding is 30% cheaper at home compared to in a hospital
• With impetus from the government, telemedicine startups like Speedoc and JagaMe have already secured partnerships with hospitals for the provision of virtual wards. Private market investors are likely to face increasing opportunities to capture returns through this expanding market

The Payments Industry - A Year of Record-Breaking Growth

• The global payments landscape is experiencing a period of remarkable dynamism. Real-time payment transactions have witnessed a staggering 42.2% year-over-year increase, reaching an unprecedented high of 266.2 billion transactions in 2023
• The positive industry performance was bolstered by strong earnings of publicly-listed firms in the payments space within the last few months:
• Mastercard reported first-quarter profit that exceeded Wall Street expectations, driven by higher card spending by consumers despite rising borrowing costs and persistent inflation. Net revenue was up 11% year over year on a constant-currency basis. Gross dollar volume increased 10% on a constant-currency basis, and transactions were up 13%
• Visa's payment volume climbed 8% in the second quarter. Cross-border volume excluding intra- Europe, a gauge of international travel demand, jumped 16%. Processed transactions rose 11% in the period. It’s share price jumped by 2.7%
• Adyen despite losing market share to Stripe and its drastic valuation drop in 2023, saw its shares soar by 22% in a single day on 8 February 2024. They had reported a 21% YoY revenue growth and a 2% YoY EBITDA growth
• Stripe crossed $1 trillion in total payment volume (TPV) in 2023, hitting a record high and up 25% from the prior year. As a comparison, US e-commerce grew 7.6% last year. At $1 trillion, the output of businesses that run on Stripe sums to roughly 1% of global GDP
• Stripe’s annual letter states that the company was “robustly cash flow positive in 2023 and expects to be again in 2024.” That may be part of the reason why it is not pursuing a near-term IPO
• The payments industry's remarkable growth, fueled by innovation and record-breaking transactions, presents a compelling investment opportunity for private market investors seeking high-growth and dynamic companies shaping the future of financial transactions

?? Exclusively on Alta

Figure AI, Anthropic, Hugging Face, OpenAI discover who’s trending with our investor network! Researched by experts, voted by insiders. View our Top Picks here!

?? Notable Fundraises

Staple | US$4M | Pre-series A | Artificial Intelligence

Developer of a deep learning platform designed to convert documents into structured data. The company's platform helps to see extracted data and make edits to continuously improve data capture behavior and automate data extraction from documents, enabling businesses to liberate employees from mundane, repetitive financial workflows

Swat Mobility | US$7.2M | Series A | Automotive

Developer of a vehicle-routing technology designed to solve complex transportation challenges. The company's platform utilizes an artificial intelligence algorithm to solve the challenges present in route planning with multiple waypoints for large-scale transportation, through pooling and route optimization to achieve better transport efficiency, enabling companies, transport operators, and government agencies to meet their transport and logistics needs

Upstage | US$72M | Series B | Artificial Intelligence

Provider of customized AI services intended to assist companies in the field of artificial intelligence. The company provides AI models according to the needs of the business to solve the core tasks of the customer, and improve the efficiency and advancement of the business process, enabling clients to solve problems and achieve the AI innovation of the company.

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About Alta Views

A fortnightly collection of the latest news from Private Capital Markets. Put together by Alta’s team of analysts, we bring you the most critical and timely pieces from private markets, to help you navigate the broad horizon. Stay tuned as we bring you the most notable fundraises, analysis on industries and companies trending within investor networks, the latest headlines, and more!

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About Alta

Alta is Southeast Asia’s largest digital marketplace for alternative investments. Alta gives investors direct access to invest and trade in a wide range of curated alternative assets, from direct investment into early to late-stage private companies, PE/VC funds, asset-backed securities of luxury assets, real estate, and more.

As a licensed integrated marketplace, Alta brings the trading and distribution of securities, fund management, and payment solutions under one roof. Through its blockchain-powered exchange, Alta is also able to support tokenization, digital custody, and trading of alternative assets.

Alta is headquartered in Singapore with global offices in Malaysia, Indonesia and India.

W: https://alta.exchange/

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