Funding Will Allow the Company to Accelerate its Mission of Building Critical Trading, Settlement, and Data Infrastructure to Bring Efficiency and Transparency to the Private Markets
New York and San Francisco – February 8, 2024 – Nasdaq Private Market (NPM), a leading provider of liquidity solutions to private companies, their employees, and investors, announced today that it has closed its Series B financing. The $62.4 million round was led by Nasdaq with participation from current investors including Allen & Company, Citi, and Goldman Sachs. New investors in the Series B include BNP Paribas, DRW Venture Capital, UBS, and Wells Fargo.
Since its spinout from Nasdaq in 2021, NPM has operated independently through an industry-backed consortium with a mission to deploy cutting-edge technology to accelerate the availability of secondary liquidity in private shares through its high-integrity trading, settlement, and data platform. NPM services some of the world’s most innovative private companies with their liquidity needs for employees and institutional investors. The company has executed more than $50 billion in transactional value across 650 company-sponsored liquidity programs and block trades.
NPM’s primary business lines include Company Solutions, SecondMarketTM Trading Marketplace, Transfer and Settlement, and Tape DTM Data and Analytics. Its Company Solutions business supports private companies using proprietary technology to facilitate tenders, auctions, and pre-direct listing programs. NPM’s next-generation SecondMarketTM electronic trading marketplace is bringing transparency and efficiency to the block trading of private shares with a model fully aligned with the interests of private companies. Its patent-pending Transfer and Settlement technology streamlines the complex, burdensome process of post-match workflows for companies and trading counterparties. NPM’s Tape DTM product will aim to deliver on the market’s need for actionable insights into trading activity and private company valuations for employees and investors.
“We are proud to secure the support of this prestigious group of partners, who share NPM’s passion to transform, modernize, and institutionalize the private markets. For too long, this $3.5 trillion asset class has been defined by inefficiency, illiquidity, and information asymmetry. This financing enables us to continue to build the critical infrastructure required to accelerate the evolution of the private markets into the modern age of efficient, transparent, and regulated electronic marketplaces,” said Tom Callahan, Chief Executive Officer, Nasdaq Private Market. “With many companies electing to stay private longer, this mission is essential to sustaining a robust and viable innovation economy.”
“Nasdaq is pleased to lead NPM’s latest funding round, accelerating our shared vision of advancing the maturity and efficacy of the private markets in a manner that supports our issuer, investor, and sell-side clients,” said Gary Offner, Senior Vice President and Head of Nasdaq Ventures, Nasdaq, and Chairman of the Board of Managers, Nasdaq Private Market. “This investment demonstrates our commitment to bringing deeper liquidity, transparency, and integrity to the private markets, and represents our support of the world’s most innovative companies for the full lifecycle of their journey from private to public.”
“BNP Paribas Global Markets has an ambitious strategy across multiple products in private markets. We’re confident that the partnership with Nasdaq Private Market will help deliver value to our clients and partners,” said Junaid Baig, Head of Strategic Investments for Global Markets at BNP Paribas.
“Citi is pleased to welcome the new investors. The growing interest from our industry peers clearly demonstrates the momentum NPM has built to bring efficiency and transparency to private markets,” said Sandeep Arora, Head of Digital Platforms & Emerging Capabilities, Citi.
“Nasdaq Private Market provides liquidity and data for companies and investors that is in high demand but historically has been difficult to source and validate,” said Kim Trautmann, Partner and Head of DRW VC. “Part of what makes the platform unique is its ability to provide both deep insights on a single company and show investors a holistic, visual view of the market data across their portfolio. This makes it a fairly end-to-end solution, which will be very compelling as we see the continued maturation of the secondary market for private shares.”
“Investors are recognizing the value of diversification and returns in the current uncertain macroeconomic landscape, prompting a growing interest in private markets. Through our commitment to Nasdaq Private Market, we aim to bolster transparency, enhance liquidity, and optimize efficiency, thereby fostering an environment that benefits companies, employees, and investors by providing increased access to secondary market liquidity,” said William Mathews, Global Head of Sales Trading at UBS.
“As the secondary private market continues to evolve and mature, we are excited to support Nasdaq Private Market execute its mission to advance this market structure and to develop private markets into a more versatile and liquid asset class,” said Baljit Basi, Investment Bank Principal Investments at UBS.
About Nasdaq Private Market
Nasdaq Private Market provides liquidity solutions for private companies and their employees and investors throughout each stage of the pre-IPO lifecycle. In 2013, the company was founded within Nasdaq, Inc. In 2021, it became an independent company with strategic investments from Nasdaq, Inc., Allen & Company, Citi, Goldman Sachs, and Morgan Stanley.
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
About BNP Paribas
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and offers its clients solutions across financing, investment, savings, and protection insurance. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas across all its activities is committed to the construction of a sustainable future, while ensuring performance and stability.
About DRW Venture Capital
DRW is a diversified trading firm with decades of experience bringing sophisticated technology and exceptional people together to operate in markets around the world. Headquartered in Chicago with offices around the globe, the firm trades a number of asset classes, including Fixed Income, ETFs, Equities, FX, Commodities and Energy. For over a decade, it also has been a trusted investor in exciting new projects through DRW Venture Capital, which operates as a subsidiary of DRW. DRW VC is a stage-agnostic investor focused on financial and enterprise technology companies that benefit from the combination of its capital and expertise.
UBS is a leading and truly global wealth manager and the leading universal bank in Switzerland. It also provides diversified asset management solutions and focused investment banking capabilities. With the acquisition of Credit Suisse, UBS manages 5.5 trillion dollars of invested assets as per third quarter 2023. UBS helps clients achieve their financial goals through personalized advice, solutions and products. Headquartered in Zurich, Switzerland, the firm is operating in more than 50 markets around the globe. UBS Group shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 47 on Fortune’s 2023 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Jefferies LLC acted as financial advisor and placement agent to Nasdaq Private Market, and Cooley LLP served as legal advisor. Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates served as legal advisor to Nasdaq, Inc., Goodwin served as legal advisor to Citi; K&L Gates served as legal advisor to Goldman Sachs; WilmerHale served as legal advisor to BNP Paribas, UBS, and Wells Fargo; and Morgan, Lewis & Bockius LLP served as legal advisor to Morgan Stanley.
Nasdaq Private Market
DRW Venture Capital
Media Relations, Global Markets, UBS Investment Bank
Elizabeth C. Lange
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to the joint venture among Nasdaq Private Market, Nasdaq, Allen & Company, Citi, Goldman Sachs, Morgan Stanley, BNP Paribas, DRW Venture Capital, UBS, and Wells Fargo and the benefits of the joint venture, and statements about Nasdaq Private Market, Nasdaq, Allen & Company, Citi, Goldman Sachs, Morgan Stanley, BNP Paribas, DRW Venture Capital, UBS, and Wells Fargo and their respective products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties, or other factors beyond the control of the joint venture participants. These factors include, but are not limited to, factors detailed in each joint venture participant’s annual report on Form 10-K and periodic reports filed with the U.S. Securities and Exchange Commission. The joint venture participants undertake no obligation to release any revisions to any forward-looking statements.
Disclosures and Disclaimers
NPM is not: (a) a registered exchange under the Securities Exchange Act of 1934; (b) a registered investment adviser under the Investment Advisers Act of 1940; or (c) a financial or tax planner and does not offer legal or financial advice to any user of the NPM website or its services. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, and member FINRA/SIPC. Transactions in securities conducted 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.
Please read these other important disclosures and disclaimers about NPM found here: https://www.nasdaqprivatemarket.com/disclosures-disclaimer/