We believe there should be a centralized marketplace for secondary liquidity.
Nasdaq Private Market (NPM) can broaden access to liquidity for wealth management platforms and feeder fund investors through our end-to-end technology, within a comprehensive regulatory framework as a Qualified Matching Service (QMS), and a centralized ecosystem of institutional buyers.
What is a QMS and How Does it Work?
The Nasdaq Private Market's Private Letter Ruling (PLR assigned by IRS 6/21/18) identifies the NPM platform as a QMS as interpreted by the IRS in accordance with requirements set out in 26 C.F.R. 1.7704-1 if the parameters of a QMS are followed, then up to 10% of the interests in a partnership may be transferred, subject to certain limitations, per annum without triggering Publicly Traded Partnership (PTP) requirements.
*Nasdaq Private Market's platform is structured to satisfy the Qualified Matching Service requirement set forth in § 1.7704-1(g) of the Procedure and Administration Regulation.
Why Partner With Us
Through NPM, fund sponsors maintain control of the process by setting parameters regarding the timing of liquidity events, choosing which funds to include, and curating the buyer universe.
Customizable datarooms allow for secure document sharing, reducing the potential for information disparity between participants.
Institutional Investor Network
NPM's ecosystem of institutional liquidity providers participate in a competitive bidding process, creating efficient price discovery.
Step 1: Participant Approval
Fund sponsor works with NPM to compose list of buyers; seller indications of interest are gathered and aggregated through the NPM platform.
Step 2: Onboarding
NPM performs required compliance AML/KYC checks on buyers and sellers.
Step 3: Data Gathering
NPM collects the relevant data from fund sponsor and/or selling participants, including fund documents, capital account information and form transfer documents.
Step 4: Liquidity Event
Participants access the NPM platform to review due diligence materials, place indications of interest and sign documents.
Step 5: Settlement
Closing materials are sent to the fund administrator for review and approval, final documents are calculated, payment notices are sent to buyers and net proceeds are remitted to sellers - all facilitated via the NPM platform.
NPM Platform Supports Multiple Fund Structures
NPM partners with wealth management distribution channels to offer HNW investors a feeder fund liquidity option, removing the liquidity barrier and expanding access to more investors.
Similar liquidity challenges impact Limited Partners (LPs) invested directly in institutional private equity (PE) funds. NPM has expanded its capabilities to support liquidity events for direct investors and layers in additional steps for clearance of ROFRs, transfer agreement negotiation and General Partner (GP) approval.
By leveraging NPM, Registered '40 Act fund managers can offer a new liquidity feature through a market-driven mechanism, creating an opportunity for product innovation in permanent capital structures.
Related Private Fund Solutions
For Limited Partner LiquidityKey Features
LP-Led SolutionsNPM supports Limited Partners in addressing the eligibility and liquidity challenges of private equity.
- End-to-End Technology
- Competitive Price Discovery
- Ecosystem of Institutional Buyers
For General Partner LiquidityKey Features
GP-Led SolutionsLeverage NPM's technology, investor network and regulatory infrastructure to gain broader access to secondary liquidity.
- Diversify Capital Sources
- Leverage NPM's Regulatory Infrastructure
- Facilitate Regular Liquidity for LPs
For Auction FundsKey Features
Auction FundsAuction Funds address liquidity challenges in current investment structures through NPM's exclusive marketplace.
- Achieve Private Equity Allocations
- Address Structural Problems
- The Key to New Capital Flow