Nasdaq Unveils Capital Venue for Private Companies

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Nasdaq OMX has launched Nasdaq Private Market, its new capital marketplace for private companies.

Nasdaq Private Market will provide qualifying private companies the tools to raise capital, control secondary transactions, and manage their equity-related functions. Securities-related services will be offered through a wholly-owned broker-dealer and alternative trading system, NPM Securities.

Member companies on Nasdaq Private Market will also have the ability to connect with its network of broker-dealers representing institutional buyers as well as family offices and other accredited investors.

In addition, the solution will enable private companies to improve their transition to the public markets by facilitating engagement with long-term institutional investors well in advance of a public offering.

By establishing a regular dialogue with investors over the platform, private companies can build relationships over time with those institutions they are targeting as purchasers in their eventual IPO. Private companies can also enhance their IPO operational preparedness by migrating to the integrated equity management solutions they will need as a public company.

"Nasdaq Private Market gives entrepreneurs more flexibility in deciding if and when to go public," says Bruce Aust, EVP at Nasdaq and chairman of the Nasdaq Private Market Board. "By obtaining interim liquidity relief, companies can choose to enter the public markets based on the needs of their business and with the proper corporate solutions and institutional investor relationships in place for a seamless transition."

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