Swiss firm sets up $200m fund for secondary buyouts in Asian startups

Swiss firm Ibex Capital, which provides confidential asset management services, is setting a US$200 million fund for secondary equity buyouts in Asia following demand from its current clients.

Secondary buyouts have also been increasingly used by founders, employees, and investors to exit a firm quietly, the company said in a statement.

According to Ibex, this could mean additional liquidity sources for late-stage technology startups. The company will focus first on China and India, while it is also interested in Southeast Asia.

“As far as the Asian startup ecosystem is concerned, companies are staying private longer, and IPOs do not really happen that often,” said Henry Prabowo, investment manager at Ibex Capital Partners, noting that the firm has become an option for those who want to cash in early.

In one instance, Ibex bought the shares of a former executive, who had millions on paper but not in cash, at a 22% discount, said its executive vice president Ralf Rickard Danbrant.

“[The executive] received a windfall of over US$8 million and suddenly had an array of options at her disposal. This was a win-win outcome for all parties involved,” he added.

Ibex said it has positions in Airbnb, Postmates, and Deliveroo by acquiring stakes from early employees and investors in the secondary market. Aside from managing assets of wealthy families, the firm also offers escrow services for mergers and acquisitions and real estate transactions.