The investment world is certainly no stranger to buying and selling large assets online. A new marketplace, called Asset-Ex, has been launched that its founder says has unique features to make it succeed as a merger and acquisition hub for clients worldwide.

Asset-Ex is aimed at transactions between around $2 million and $500 million, embracing all kinds of business deals – including, quite possibly, wealth management firms. The Geneva-based business is backed by George Koukis, chairman of the financial software firm Temenos. It offers a search engine for buyers, and enables users to directly control release of information to counterparties, as well as secure data processing and storage.

Its founder, Jamie Apold – a former private banker at Barclays Wealth – argues that the site has unique features that will make it appeal to a wide audience, including private equity and venture capital firms. For example, would-be buyers can use the site to purchase part of a firm as well as the entire operation.

“Where we think we are innovative is the combination of a billboard and a data room. There are plenty of sites for the sale of assets – what I call billboards – but they don’t really help very much beyond that,” Apold told this publication in a telephone interview.

As a result of the way that people can enter data about transactions and their businesses, it is hoped that Asset-Ex will become a template for merger and acquisition transactions that others will follow, he continued.

Sellers can be anonymous but once they have been approached by a buyer then identities are disclosed between the parties. “When a seller registers an asset, the first thing they do is talk about is themselves,” Apold said.

Apold explained that Asset-Ex is targeting transactions in the $2 million to $500 million range because if firms worth more than $500 million are being put up for sale, not many buyers will be available.

“Because we’re an internet site, we are throwing the net out pretty widely. The sweet spot is below $500 million. ……anything under $2 million is probably too small already,” he said.

Sellers can be anonymous but once they have been approached by a buyer then identities are disclosed between the parties.

Another unique feature of the exchange, Apold said, was that buyers could buy part, as well as all, of a business, which made it attractive for participants such as private equity firms. (Such firms often like to buy stakes in a firm rather than the entire business).

What is the relevance to the wealth management industry?

Private banks would, for example, help clients who want to put their businesses up for sale, using this platform as part of the process, he said.

Sellers of assets pay a yearly subscription for site access and it takes a commission on specific deals; buyers pay only a transaction commission.