eGuarantee raises capital as demand surges; Correlation lifts stake to over 60%
- Total value of bonds facilitated has grown from $8 million to over $100 million in less than four years
- 338% growth in value of bonds written in the past 12 months alone, reflecting rapidly accelerating market adoption
- Global specialist insurance investor Correlation increases stake from 25% to over 60%
- Plans to scale operations and expand into New Zealand
Media release
Sydney, Australia – eGuarantee, Australia’s market leader and pioneer of digital Lease Bond guarantees for commercial leases, has raised $5.5 million to accelerate growth and scale its platform following a 338% increase in the total value of bonds written in the last 12 months.
Global specialist insurance investor Correlation has increased its holding from 25% to over 60%, backing eGuarantee’s rapid adoption across more than 110 leading landlords.
“This capital lets us scale fast to meet surging demand,” said Stephen Ellis, Executive Chairman of eGuarantee and former CEO of CBRE and Knight Frank Australia.
“Real estate is a notoriously slow-moving industry but landlords need to move fast to addressantiquated bank guarantees. We are introducing Lease Bonds that cut risk for landlords and unlock cash for tenants. Instead of tying up as much as 12 months of rent in a bank guarantee, businesses can redeploy that money and secure a digital bond issued and managed online.
“We believe the industry is ripe for disruption.
“After a year of significant growth within the business, over the next 18 months we will accelerate our three-year strategy to capture over 5% of the $10 billion commercial lease security market.”
eGuarantee will use the raised capital to scale landlord acquisition and distribution, deepen coverage nationwide, and support expansion to New Zealand within the next three years.
“Correlation has high conviction in the opportunity for Lease Bonds to replace bank guarantees in Australian commercial property. The product just makes sense for landlords and tenants alike.” said Lance Warner, Managing Partner at Correlation.
“eGuarantee is executing with speed and quality, and we are increasing our stake to a majority position to support the team as they scale and capture this market.”
Led by an experienced team including co-founder and Executive Director Shaun Sergay, Executive Chairman Stephen Ellis, co-founder and Director Cedric Fuchs and Executive Director Nicolas Ivanov, eGuarantee has demonstrated exceptional traction.
eGuarantee’s Lease Bond solution is now accepted by more than 110 leading landlords, including Dexus, Vicinity Centres, Brookfield, Centuria, EG Funds and AsheMorgan. The company also works closely with agents such as JLL, CBRE, Knight Frank, and Colliers.
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About eGuarantee
eGuarantee is Australia’s market leader in digital Lease Bond guarantees for commercial leases. Led by Co‑founder and Executive Director Shaun Sergay (former PWC), Executive Chairman Stephen Ellis (former CEO of CBRE and Knight Frank), co-founder and Director Cedric Fuchs co‑founder of Charter Hall) and Executive Director Nicolas Ivanos (former Prospa), eGuarantee’s platform enables businesses to secure lease obligations without tying up cash in traditional bank guarantees. With acceptance from over 110 leading landlords, eGuarantee is unlocking working capital and modernising commercial leasing across Australia.