Private Fund Solutions

For

  • Addressing the challenges of liquidity in alternative investment funds
  • Creating opportunities for new product vehicles
  • Broadening access to new sources of capital
Explore

We have built a new industry standard – a sustainable marketplace for today, and started to pave the way forward for future investor access.

Who Partners With Us

Fund Managers

Broaden access to investor capital by addressing the challenges of liquidity by partnering with NPM to design and sponsor a controlled auction mechanism inside your existing or future fund structures.

Financial Advisors & Investors

Gain access to a centralized and transparent secondary marketplace for your high net worth clients, a marketplace previously only available to the institutional world.

Wealth Management Firms

Partner to offer high net-worth investors a centralized and transparent secondary marketplace, removing the liquidity barrier, and providing a more efficient and competitive pricing process for investors.

Secondary Liquidity Providers

Gain access to consistent and aggregated secondary fund opportunities without the fragmentation or operational issues of individually negotiated transactions.

Why Partner With Us

  • Centralized Model

    Our market model offers a balanced approach of periodic auctions with standardized agreements and process.

  • Regulated Marketplace Intermediary

    We work with our regulatory agencies to help ensure that our platform is compliant and are enabled to operate as a QMS as interpreted in a Private Letter Ruling by the IRS and received exemptive relief from the SEC relating to certain auctions.

  • Investor Network

    Our growing ecosystem of institutional buyers and secondary liquidity providers focuses on secondary transactions across all of the private funds we service.

With the increasing demand for alternative investment products from high net worth investors, and fund managers' desire to expand access to new investors, a solution for liquidity becomes a critical enabler for new capital formation.

Adena Friedman, CEO, Nasdaq

HOW IT WORKS

The NPM Fund Auction Platform is designed to scale and support multiple fund structures, aligning with the evolution of product creations to open investor access.

01

Designed by Sponsors

Fund managers control the parameters by which their funds are auctioned on our proprietary platform.

02

Regulatory Framework

Built on our deep regulatory experience in building markets, NPM operates as a Qualified Matching Service (QMS), as interpreted by the Private Letter Ruling issued to Nasdaq, Inc. by the IRS for partnership interests and as an alternative trading system (ATS) with granted limited exemptive relief by the SEC, both of which allow for increased limitations in liquidity.

03

Standardized Marketplace

Our platform provides market standardizations that drive efficiency, natural competition and price discovery across multiple fund interests in a centralized marketplace.

04

Benefits Sellers

Integrations with distributors and administrators allow for financial advisors and investors to participate as sellers, rebalance portfolios and actively manage illiquid fund interests.

05

Attract Buyers

By streamlining and centralizing seller interests, NPM allows secondary liquidity providers to actively place bids across multiple fund opportunities; thereby ensuring greater liquidity and market-driven institutional pricing.

06

Streamline Settlement

Our transaction platform manages the full process, including execution of transfer agreements, adjustments to payments and settlement across multiple participants through a unified payment process.

 

 

Fund Vehicles We Support

Direct Funds

The NPM platform brings structure and efficiency to the liquidity process for direct investors, layering in GP approval and price parameters.

Key Offerings

  • Auction model

  • Up to 10% Publicly Traded Partnerships (PTP) safe harbor for GPs

  • Transparency and control of buyers

Feeder Funds

NPM partners with wealth management distribution platforms to offer liquidity to individual investors through a centralized auction process. The platforms can aggregate and match participant interests through price competition and price discovery while controlling the parameters of the transaction.

Key Offerings

  • Auction model

  • A new standardized solution

  • Up to 10% PTP safe harbor

Registered ’40 Act Fund Managers

Fund managers can provide a new avenue for liquidity through a market-driven mechanism, broadening investment access like never before.

Key Offerings

  • Registered closed-end fund

  • Elects Regulated Investment Company (RIC) tax status

  • Quarterly fund-sponsored tenders

Auction Funds

NPM elevates the interval fund by plugging monthly, auction based liquidity into the structure, while retaining all other benefits of interval funds such as option to elect RIC status, lower minimums, and zero capital calls. Auctions also help lower cash drag and offer investors choice with dual liquidity solutions.

Key Offerings

  • Registered closed-end fund

  • Elects RIC tax status

  • Monthly auctions and annual tenders

Regulatory Expertise and Leadership

  • Private Letter Ruling

    The NPM platform can operate as a Qualified Matching Service (QMS), as interpreted by the IRS in a Private Letter Ruling.

  • No-Action Relief

    Certain funds using the NPM platform may rely on a limited exemptive relief by the SEC from Rule 102 of Regulation M under the Securities Exchange Act of 1934 in connection with certain auctions.

  • Regulatory Expertise

    NPM operates a regulated ATS through its broker-dealer subsidiary, NPM Securities, LLC. It also operates a broker-dealer, SMTX, LLC, which has been approved to act as a paying agent.

 

 

Want to learn more?

For product demos and more information about secondary liquidity, we’re here to help.