Wealth Management

liquidity services support wealth management platforms, wealth advisors and their clients

This Solution Helps

  • Banks
  • Financial Advisors
  • High Net Worth Investors
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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.

Fund Manager Liquidity

 

What is a QMS and How Does it Work?

What is a QMS_NPM

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

Controlled Liquidity

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.

Enhanced Transparency

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.

How It Works

Nasdaq Private Market works with wealth management fund sponsors to create structured, efficient liquidity events. Each step of the process, from gathering indications of interest through payment process, is facilitated through the NPM platform.

  • 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

Feeder Funds

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.

Direct Funds

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.

Closed-End/Interval/BDCs

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.

General Partners Can Only Allow Up To
2%
of total interests to be transferred during the taxable year of the partnership to avoid being treated like a Publicly Traded Partnership (PTP), according to the IRS
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LP Liquidity with NPM's QMS
Learn more about how our QMS may facilitate an additional 8% (for a total of 10%) of LP interest to transact per year, allowing LPs to more actively manage their PE portfolios.
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General Partners Can Only Allow Up To
2%
of total interests to be transferred during the taxable year of the partnership to avoid being treated like a Publicly Traded Partnership (PTP), according to the IRS

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