New York, NY Republic, an alternative investment platform open to all investors, has acquired Compound, a real estate investment technology company that facilitates microinvesting in urban residential real estate.
This is the second in a series of acquisitions for Republic this year. In April 2020, Republic announced the acquisition of Greycroft and Spark Capital-backed Fig, the leader in direct investment for video games and gaming technology. Through these strategic acquisitions Republic has firmly cemented its position as the dominant financial services player in the microinvestment industry, committed to offering its 500,000+ users a broad line-up of alternative investment offerings, ranging from startups to video games, and now, to real estate.
The acquisition of Compound is part of Republic’s entry into real estate investing and the launch of Republic Real Estate, which will be led by the former principals of Compound, Janine Yorio and Jesse Stein. Republic Real Estate enables real estate investment in small dollar increments, allowing both accredited and non-accredited investors to build wealth through capital appreciation and dividends from rental income.
“The steady return profile of real estate investing is a natural complement to the higher-risk, higher-return investments currently available on the Republic platform,” said Republic CEO, Kendrick Nguyen. “We’re building the ‘Amazon’ of private market investing, and now we are one step closer to granting everybody access to an encyclopedic array of high-quality alternative investments previously only available to the ultra-wealthy.”
Both Republic and Compound share a common mission: to fundamentally reshape the investment landscape by opening high-quality alternative investments to all investors, particularly those who have historically been shut out. This includes non-accredited investors (92% of Americans) and international investors alike. The minimum investment on the Republic platform is just $10.
Since the JOBS Act was passed in 2012, the crowdfunding industry has grown by approximately 16% each year and is expected to become a $28 billion industry by 2025.
“Following the 2008 financial crisis, giant private equity firms were able to generate astronomical returns for their investors through buying real estate at deeply discounted prices. This pandemic will create similarly attractive real estate investment opportunities, but Republic Real Estate levels the playing field by giving everybody--even the little guy--access to this incredible wealth creation opportunity,” said Yorio.
The terms of the acquisition have not been disclosed.