Private Fund Trends Report background

    Nasdaq Fund Secondaries | Registered Fund Managers

    A New Exit Feature for Registered Funds

    A new option for Registered Fund Managers to offer a Structured Liquidity Program® for their investors.

    Private Market Exposure for Accredited Investors

    Nasdaq AFC Crypto Factsheet

    Exit Opportunities

    Provide periodic exit opportunities for investors in a true secondary market. Traditionally, liquidity in the form of tenders by the fund manager is capped at 5% of the fund’s total assets per quarter, creating the risk that orders might not be fulfilled.

    Regulatory trends for marketplaces

    Reduced Cash Drag

    Funds can be more fully invested and reduce cash drag that can occur in registered fund structures. By reducing cash drag, our exit feature enables funds to provide greater opportunity for higher returns.

    People on a square

    A Better Experience for Investors

    Our exit feature can allow faster settlement, letting shareholders rebalance portfolios in as little as 2-3 weeks. Through the secondary market, shareholders can gain greater transparency into pricing, versus comparably opaque processes in tender-only exit features.

    Support

    Frequently Asked Questions

    What is an exit feature?

    Nasdaq has exemptive relief to permit certain funds to offer an exit feature via periodic auctions conducted on the Nasdaq Fund Secondaries platform that can offer enhanced liquidity opportunities for investors. 

    Registered funds that use this exit feature dramatically enhance the investor experience by increasing the frequency of exit opportunities. Further, liquidity isn’t funded by the manager, but instead through a secondary market, enabling the fund to be fully invested and enhance the investor experience. 

    This change creates a big impact on a fund’s liquidity profile and the investor experience and creates a practical way for accredited investors to gain private market exposure. 

    Nasdaq has exemptive relief to permit certain funds to offer an exit feature via periodic auctions conducted on the Nasdaq Fund Secondaries platform that can offer enhanced liquidity opportunities for investors. 

    Registered funds that use this exit feature dramatically enhance the investor experience by increasing the frequency of exit opportunities. Further, liquidity isn’t funded by the manager, but instead through a secondary market, enabling the fund to be fully invested and enhance the investor experience. 

    This change creates a big impact on a fund’s liquidity profile and the investor experience and creates a practical way for accredited investors to gain private market exposure. 

    How can an illiquid asset class meet the unique liquidity needs of new investor types that have a growing demand for private market exposure?

    Registered Funds offer a vehicle for democratized access to private and alternative assets, but until now the limited liquidity available in these structures has created serious drawbacks for investors. The secondary marketplace for Registered Funds operated by Nasdaq enhances the liquidity profile in order to better meet the needs of investors as well as address previous adoption hurdles with industry intermediaries.

    Registered Funds offer a vehicle for democratized access to private and alternative assets, but until now the limited liquidity available in these structures has created serious drawbacks for investors. The secondary marketplace for Registered Funds operated by Nasdaq enhances the liquidity profile in order to better meet the needs of investors as well as address previous adoption hurdles with industry intermediaries.

    Contact Us

    Explore Related Solutions

    General Partners

    The NFS platform facilitates GP-led liquidity events for General Partners looking to offer a more streamlined approach for their investors.

    Limited Partners

    Nasdaq supports Limited Partners in addressing the liquidity challenges of private equity through modern technology, a comprehensive regulatory framework and an ecosystem of institutional buyers.

    Wealth Managers

    Liquidity services support wealth management platforms, wealth advisors and their clients.