VIEW press/Getty Images
Stock exchange operator Nasdaq said Wednesday it has entered into a joint venture through which it will spin off its marketplace for shares of private companies,
Nasdaq Private Market, a platform on which private companies raise capital and manage secondary transactions, will become a standalone company in partnership with Citigroup, Goldman Sachs, and Morgan Stanley and SVB Financial Group, the parent company of Silicon Valley Bank. The spin-off will receive strategic investments from the group of banks. Financial terms of the agreement were not disclosed in Tuesday's joint statement. Nasdaq launched the private market in 2014.
Nasdaq said the joint venture will accelerate business in the private company secondary trading market, a market sought after by investors looking to buy into startups and by people working for those companies who want to cash out their shares.
"Innovation companies are staying private longer and need the ability to offer their employees a safe and easy way to generate liquidity while they are building their businesses," Greg Becker, CEO of SVB Financial, in the statement. The venture "will offer our clients a path to employee retention in an environment where access to talent is one of the biggest challenges," he said.
Nasdaq said its platform has been the leading provider for private company tender offer liquidity over the last five years, with its team facilitating 477 transactions and executing more than $30 billion in transaction volume. Cryptocurrency exchange operator Coinbase used Nasdaq Private Market ahead of launching its IPO in April.
NOW WATCH: Sneaky ways Costco gets you to buy more
See Also:
- The 5 best home theater systems of 2021 for immersive surround sound
- Goldman Sachs says to buy these 50 stocks poised to offer surefire returns through year-end in a bumpy market that's grinding higher
- A chief investment officer breaks down how to find private-equity opportunities with 100X potential — and shares 16 examples on his radar now
