Meixin Global, a technology platform that lets asset managers access Chinese high-net-worth investors, has secured over USD5 million in its Series A financing round.
Korea Investment Partners (KIP) led the round, joined by existing investor Bertelsmann Asia Investments (BAI) and new investors Tangzhu Capital and Liuhe Capital.
Most asset managers find it confusing and time consuming to raise capital from Chinese high-net-worth investors and their wealth management advisors. Meixin solves this problem. Its technology platform, MX Terminal, gives asset managers exposure to top wealth managers. And crucially, it relieves both managers and investors of the complicated legal and diligence procedures that such subscriptions would otherwise impose.
MX Terminal aggregates investments from multiple investors into one access fund. This not only reduces transaction costs but also lowers minimum investment amounts. The platform then enables automated subscription, redemption and reporting. Before and after investing, wealth managers use the system to see manager track records, industry research papers, and related articles.
Many asset managers have traditionally only been able to access institutional investors in China. Meixin makes global private equity funds, hedge funds, venture capital and real estate investments available to wealth management firms and independent financial advisors, financial product distributors and institutional investors.
Established in New York City in 2015, with offices in New York City, Houston, Beijing and Shanghai, Meixin Global has already established partnerships with several large Chinese wealth management firms, including HNA Group and Jupai Holdings Ltd. According to Kevin Diao, CEO and Co-Founder, the firm plans to use proceeds from the financing to enhance its technology platform, expand its product offerings and extend its geographic reach.
“Global asset allocation and overseas investments, particularly for individual investors, remains a largely un-tapped market. Chinese demand for such services surrounding is increasing rapidly,” says Hudson Kyung-sik Ho, head of KIP’s China division. “KIP has been focusing on technology that can disrupt and improve global asset allocation. Meixin Global understands the field. Combining experience in investment banking and financial technology, Meixin is leading the race in global asset allocation innovation; this is a key reason for KIP’s investment in Meixin.” Diao emphasizes that Meixin’s cooperation with KIP paves the way for the firm to access the South Korean market.
Zhao Penglan, Vice President of BAI, which led the Pre-A round and participated in the Series A, says: “Meixin is laying the ground work for BAI’s Fin-Tech portfolio. Global asset allocation for Chinese investors is an undeniable trend. We are delighted to see the continued product upgrades that Meixin makes, taking full advantage of technology and making great progress in product innovation.”
Meixin Global Inc previously closed its Pre-A round of financing from BAI, Plum Ventures, Atom Ventures and Taoshi Capital in June 2016.
