Waves

    Private Fund Liquidity

    Unlock Liquidity Opportunities with Nasdaq Fund Secondaries’ Qualified Matching Service (QMS) Technology

    Improving Private Fund Liquidity to Support Fundraising 

     

    LP’s appetite for liquidity outside of ordinary distributions has risen in recent years amidst a more challenging exit environment. Limited by a 2% cap on transfers, many GPs are faced with PTP queues - sometimes years into the future. 

    At the same time, many GPs are actively raising new funds. Pacing models typically assume that LPs will reinvest, allowing new vintages to self-fund. A challenging exit environment breaks some of those assumptions. 

    Enhanced liquidity through the secondary market may allow LPs to exit previous funds and reallocate their capital more efficiently, supporting continuous fundraising efforts.

    Clearing Transfer Queues

     

    With help from Nasdaq Fund Secondaries Qualified Matching Service (QMS) technology, a fund manager can facilitate auctions on the NFS platform in accordance with Treasury Reg 1.7704-1(g), thereby enabling a fund to increase the potential total amount of transferable interest during the fund’s taxable year from 2% up to 10%. Subject to certain limitations.

    Maximum 2% of interest can be transferred during the taxable year without a QMS, Maximum 10% of interes can be transferred during a taxable year with the NFS QMS

    *Additional safe harbors may apply under the applicable Treasury regulations.

    Learn More About Nasdaq Fund Secondaries' QMS Technology

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    <p>Our translation tool strives for accuracy, yet no machine translation is flawless or a substitute for human translators. Translations are offered as a convenience, "as is." We do not guarantee the accuracy, reliability, or correctness of translations from English to other languages. Certain content may not translate accurately due to software limitations.<br><br>The original English text prevails on the website. Variances in translation are non-binding and hold no legal weight for compliance or enforcement. For queries about translated content accuracy, consult the official English version of our site.</p>
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