The NASDAQ Private Market, LLC announced today the launch of its new capital marketplace for private companies. Built as a company-first platform on industry-leading technology, NASDAQ Private Market will provide qualifying private companies the tools and resources to efficiently raise capital, control secondary transactions, and manage their equity-related functions. Securities-related services will be offered through a wholly-owned broker-dealer and SEC registered alternative trading system, NPM Securities, LLC, member FINRA/SIPC. Member Companies on NASDAQ Private Market will also have the ability to connect with its global network of registered broker-dealers representing qualified institutional buyers as well as family offices and other accredited investors.
“We are excited to officially open NASDAQ Private Market for business,” said Greg Brogger, President of NASDAQ Private Market. “We listened to the needs of private growth companies and developed NASDAQ Private Market to serve as a fully integrated end-to-end solution for managing their equity functions. NASDAQ Private Market will bring liquidity, efficiency and control to private companies. Member broker-dealers and their investor clients will benefit from greater access to financial information, transaction flow and liquidity.”
“A critical component of the NASDAQ OMX mission is providing support to the innovators and entrepreneurs in today’s marketplace,” said Bob Greifeld, CEO of NASDAQ OMX. “For over 40 years, NASDAQ OMX has been committed to serving the needs of companies for their entire life cycle – whether emerging growth companies or mature corporations. We are excited to support the launch of NASDAQ Private Market and to extend our product offering to private companies with this new efficient and transparent market.”
A Platform for Controlled Liquidity
To assure a community of quality private companies, member companies must meet NASDAQ Private Market’s membership requirements.
Companies can use the NASDAQ Private Market platform to manage liquidity programs for employees and other shareholders. These liquidity programs have become an increasingly common tool used by leading private companies to recruit and retain the most talented employees. NASDAQ Private Market supports such programs by enabling companies to identify a pool of potential buyers and set parameters on the percentage of holdings that shareholders can sell. Participating shareholders gain liquidity, and the company is able to facilitate the transition of ownership into the hands of long-term institutional holders.
Compliance with regulatory requirements is critical to the success of these liquidity programs. “The NASDAQ Private Market has been designed to reflect industry best practices and to hardwire tools to assist with securities law compliance into the system," said Steve Bochner, partner and former CEO of Wilson Sonsini Goodrich & Rosati and Chair of NASDAQ Private Market’s Board of Advisors. All investors will be accredited by NASDAQ Private Market Member Broker-Dealers. In addition, to ensure investors have appropriate financial information, a Member Company will agree to make certain limited disclosures to those that transact in its shares.
Optimizing the Transition to Public Markets
In addition, NASDAQ Private Market will enable private companies to improve their transition to the public markets by facilitating engagement with long-term institutional investors well in advance of a public offering. By establishing a regular dialogue with investors over the platform, private companies can efficiently build relationships over time with those institutions they are targeting as purchasers in their eventual IPO. Private companies can also enhance their IPO operational preparedness by migrating to the integrated equity management solutions they will need as a public company.
“NASDAQ Private Market gives entrepreneurs more flexibility in deciding if and when to go public,” said Bruce Aust, Executive Vice President at NASDAQ OMX and Chairman of the NASDAQ Private Market Board. “By obtaining interim liquidity relief, companies can choose to enter the public markets based on the needs of their business and with the proper corporate solutions and institutional investor relationships in place for a seamless transition.”
The NASDAQ Private Market platform combines a capital marketplace with an efficient end-to-end solution for controlling secondary transactions, disclosure management, capitalization table management, and stock plan administration. From a secure online portal, private companies can consolidate the management of all of their equity functions, saving time and money and reducing the potential for errors.
The NASDAQ Private Market, LLC is the new capital market for leading private companies. Through its broker-dealer network and partners, NASDAQ Private Market connects companies with a global community of investors, and provides an integrated equity solution for managing everything from cap table management to stock plan administration. Whether a company seeks to optimize an eventual IPO or remain private permanently, NASDAQ Private Market provides complete capital market support to meet its needs. For certain eligible investors and shareholders, NASDAQ Private Market is a place to discover and engage with some of the most exciting private companies.
NASDAQ Private Market was formed in March of 2013 as a joint venture between The NASDAQ OMX Group, Inc. and SharesPost, Inc. Securities-related services will be offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, which is a member FINRA/SIPC and a wholly-owned subsidiary of The NASDAQ Private Market, LLC. Securities offered through NPM Securities, LLC are not listed or traded on The NASDAQ Stock Market LLC, nor are the securities subject to the same listing or qualification standards applicable to securities listed or traded on The NASDAQ Stock Market, LLC.