Need to Meet: Marcus New, founder and CEO, InvestX Capital

Working within requirements laid down in the Jobs Act, InvestX offers accredited retail investors access to investments in established companies starting with a minimum investment threshold for individuals of $2,500. Through its relationships with private equity firms, InvestX gets an allocation for its members and then writes one check to the sponsor once it compiles investments from individuals.

“Retail investors have been locked out of private equity,” said Marcus New, founder and CEO of InvestX Capital. “Institutional investors often allocate about 15 percent of their money to private equity. And it’s the highest-performing asset class.”

InvestX has teamed up with Mutual Capital Partners, a private equity firm based in Cleveland, to line up a $1 million allocation for InvestX members in Cleveland HeartLab, a five-year-old health sciences specialist in cardiovascular disease prevention, diagnosis and management services.

Cleveland HeartLab has already drawn more than $32 million in funding from Excel Medical Ventures, Healthcare Venture Partners, Mutual Capital Partners, Cleveland Clinic, and Merck Global Health Innovation Fund. InvestX expects its funding round to close by the middle of January.

InvestX will charge a standard 2 percent management fee and 20 percent of the carried interest to its clients. New said he expects a wider variety of deals from middle-market buyouts to pre-IPO share offerings as the platform grows. InvestX said two additional deals are already sourced and will be available in early 2015.

New said he’s following a similar play book as his founding of Stockgroup Publishing, an online financial data and information business aimed at improving access to companies in the commodity sector by retail investors. That business now has about 1 million users.

“With InvestX, we’ve been able to put the investor at the same table as other private equity investors,” New said. “There is an unprecedented opportunity to access established, high-growth private companies that are already generating revenue.”

InvestX is rolling out its new platform after it closed a $5.2 million investment round from U.S. Global Funds, Meridian Funds, Pathfinder Asset Management, Mercury Capital, Mutual Capital Alliance and Stockhouse Publishing, along with angel investors.

Phone: 1-844-246-4556



By Steve Gelsi 

Correction: A previous version of this story incorrectly spelled the name Marcus New. The story has been updated.