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Nasdaq Private Market expands into alternative investments

First Published 10th March 2017

Nasdaq Private Market addresses challenges of fund liquidity with launch of Alternatives.

Adena Friedman, Nasdaq

Adena Friedman, Nasdaq

New York & San Francisco - Nasdaq Private Market (NPM) has announced the launch of Alternatives, a new business line designed to address the challenge of liquidity in alternative investment funds, with a vision to broaden access to these investments in an innovative way.

"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," said Adena Friedman, CEO, Nasdaq. "The question of liquidity continues to challenge the alternatives industry, and Nasdaq is excited to leverage its core strengths to bring this essential evolution to market."

Key features of NPM's platform for Alternatives include:

  • Fund managers maintain control over which funds participate in the liquidity events and the investors permitted in those funds
  • Eligible Participants obtain controlled access to fund documents and other information  Secondary liquidity providers place indicative bids across each fund, ensuring deep liquidity and market-driven, competitive pricing
  • Bids to buy or sell a fund interest are entered directly into the platform, and are automatically matched according to predetermined auction rules  Standardized agreements are managed and executed via the platform
  • Final settlement amounts are calculated and payment is facilitated through NPM's registered broker-dealer

Full details can be found here