Nasdaq Private Market (NPM) says it has now executed more than $50 billion in transactional value across more than 700 company-sponsored liquidity programs for venture-backed private companies as well as 190,000 individual shareholders and investors. Its new Transfer & Settlement (T&S) product is now responsible for over $500 million in trades.
NPM provides a marketplace for secondary transactions in private shares. These can be securities in well-established firms that may be on the path to a public offering in the future. Frequently, early employees are reimbursed in part with shares. Some may want or need liquidity, and private markets like NPM offer a needed service to match sellers with buyers.
Andrew Kroculick, Head of Business Operations and Client Experience, Nasdaq Private Market, said they have settled trades for over a decade. He said the recently introduced T&S product, an in-house share transfer technology, is a game changer for equity management.
T&S is said to make private markets more investable as it improves liquidity by reducing process friction.
As public markets have dimmed due to excessive cost and regulation, private markets have become more important for both issuers and investors.
