- Elevating the interval fund with monthly, auction-based liquidity
- Retaining all other benefits of interval funds such as; lower minimums, zero capital calls, and RIC status for 1099 tax reporting
- Lowering cash drag and offering investors more choice with dual liquidity solutions
Auction funds will fundamentally change the way Financial Advisors (FAs) allocate alternative investments (AIs) into their clients’ portfolios via an offering unlike any from their competitors.
The Benefits of Auction Funds
Achieving Private Equity Allocations
No wirehouse is close to achieving model portfolio alternative investment allocations even though private equity (PE) is the biggest unmet desire of high net worth (HNW) investors.*
Addressing Structural Problems
Auction Funds provide solutions not just for Accredited Investors, but for Qualified Purchasers who can buy traditional feeder funds, eliminating the issues that affluent investors & their gatekeepers experience with existing Alternative Investments.
The Key to New Capital Flow
Auction Funds may significantly increase private equity allocations, and create a strong argument to FAs seeking a new investment vehicle – a fundamentally better answer to the unmet desires of HNW investors.
*Source: 2018 U.S. Trust Insights on Wealth & Worth, June 2
In 2017, the SEC granted Nasdaq exemptive relief, permitting Nasdaq Private Market to facilitate the first-ever fund structure that is continuously available and allows HNW investors to access investment opportunities in illiquid assets – all within an existing market for the fund shares. As the sole approved marketplace to facilitate monthly auctions, Nasdaq Private Market adds liquidity to the latest evolution of investment structures for HNW investors.
Evolution of Private Fund Structures:
How it Works
Auction Funds address the challenges that HNWI (High Net Worth Investors) face with current investment structures by providing an exclusive marketplace at NPM to hold periodic auctions that satisfy investors’ demand for alternative investments with the benefit of more frequent liquidity.
Onboarding & Setup
Specific auction language will be provided to insert in fund documents, and onboarding investors, buyers, and funds is simple.
Auctions occur periodically and can be customized to meet a fund sponsor’s criteria.
Our algorithmically-managed auction process determines the clearing price for all buyers and sellers – regardless of order size.
Closing & Settlement Period
Our dedicated operations team manages the integrated payment workflow and closing documentation through our own paying agent.
For more information about auction funds, please refer to recent thought leadership and content from NPM and our partners
- IWI Webinar Series: Bob Rice of Tangent Capital Partners discusses the various structures of private equity and why auction funds are the next liquidity solution for fund managers, financial advisors and their clients.
- IWI Webinar Series blog post: Athena Ole, Head of Private Funds at Nasdaq Private Market, summarizes the key takeaways from the IWI webinar series, including how NPM’s auction fund structure adds liquidity to the latest evolution of investment structures for high net-worth investors.
- Nasdaq Private Market Solutions Infographic: Your quick reference guide to Nasdaq Private Market’s liquidity solutions for private funds and private companies.
- Access our whitepaper on auction funds, A New Option for Liquid Private Investments.
To learn more about our auction fund platform, click here