Structured Liquidity Programs on NPM Platform Increased 20%
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NEW YORK and SAN FRANCISCO, July 27, 2016 (GLOBE NEWSWIRE) —The NASDAQ Private Market, LLC has published the results of its 2016 Mid-Year Private Company Report, which summarizes private company liquidity activity on the NPM platform for the first half of 2016.
KEY FINDINGS INCLUDE
- Secondary liquidity program total: 12, a 20% increase from 1H 2015
- Program volume total: $544 million, a 136% increase from 1H 2015
- Average program size: $45 million, a 95% increase from 1H 2015
- 67% share repurchase
- 33% third-party tender offer
PROFILE OF ELIGIBLE SELLER POOL FOR PROGRAMS ON NPM PLATFORM
- 70.2% current employees
- 21.7% former employees
- 7.7% investors
- 0.4% founders
“Amidst a backdrop of global market volatility and a slowdown in the IPO market, private company liquidity on our platform remains resilient with increases in total programs and total program volume for the first six months of the year,” said Bill Siegel, Head of NASDAQ Private Market. “As private companies adopt new legislation, such as the RAISE Act, we anticipate that more companies will offer secondary liquidity as a means of attracting and retaining employees.”
Employee retention remains the main priority for our clients when deciding on how to design their tender offer programs. Growth in share repurchases, as a percentage of total programs, signals a commitment from clients to provide liquidity to employees who remain the largest group of eligible participants.
“An important part of our equity compensation program is the ability to grant liquidity to employees and shareholders, so they can benefit from their investment in Skybox Security,” said Lior Barak, CFO of Skybox Security. “With NASDAQ Private Market’s solution, we can control our liquidity events very efficiently, while providing a seamless transaction experience for our shareholders.”
Note: All data as of June 30, 2016; Data collected from the SecondMarket platform may include transactions conducted through current and former affiliates of SecondMarket.
About NASDAQ Private Market:
The NASDAQ Private Market, LLC is the premier equity services provider to private companies. Our end-to-end solution enables private companies to digitize, integrate, and control all of their equity-related functions, including cap table management, shareholder liquidity, investor relations, and capital raising. Whether a company seeks to optimize an eventual IPO or remain private permanently, NASDAQ Private Market provides comprehensive 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. The information contained herein is provided for informational and educational purposes only. None of the information provided is an offer or solicitation to buy or sell any securities, or to provide any legal, tax, investment or financial advice. The NASDAQ Private Market, LLC 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 advice to any user of the NASDAQ Private Market website. Technology services may be offered by The NASDAQ Private Market, LLC’s subsidiary, SecondMarket Solutions, Inc. Securities-related services offered through SecondMarket Solutions, Inc. are provided by SMTX, LLC, a registered broker-dealer, which is a member FINRA/SIPC and also a wholly-owned subsidiary of The NASDAQ Private Market, LLC. Securities offered through SMTX, 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. Data collected from the SecondMarket platform may include transactions conducted through current and former affiliates of SecondMarket. To learn more, visit www.npm.com.