An Overview of Restricted Stock Units for Private Companies

Published

November 19, 2018

As private companies continue to evolve and rapidly grow in size, retaining and attracting top talent has become increasingly challenging. Nasdaq Private Market has facilitated over 200 secondary programs since 2013, and primarily works with companies that allow employees to sell vested shares or exercise and sell options. While option grants still dominate the private company market, we have seen several companies exploring or implementing RSUs as an equity incentive for employees. As a result, these companies want to know what solutions are available for addressing liquidity prior to an IPO or M&A event.

In this paper, you will read about:

  • An introduction to Restricted Stock Units (RSUs)
  • The advantages and disadvantages of using RSUs compared to options
  • Key considerations from NPM’s past experience with RSUs in liquidity programs

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Our Solutions

We are a market leader in facilitating private company liquidity. Since 2013, we have facilitated liquidity programs on behalf of 120+ private companies.

Key Offerings

  • Tender Offers/Buybacks

  • Secondary Captial Introductions

  • Auctions

Through organized auctions, fund managers can provide liquidity to current investors while broadening access to new investors.

Key Offerings

  • Limited partner Interests

  • '40 Act Registered Funds

  • Auction Funds