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2015 Year-End Report Reveals Growing Trends in Private Company Liquidity. Structured Liquidity Programs on NPM Platform Increased 33%.
NEW YORK and SAN FRANCISCO, Feb. 08, 2016 (GLOBE NEWSWIRE) — The NASDAQ Private Market, LLC has published its 2015 Year-End Private Company Report, which summarizes private company liquidity activity on the NPM platform.
KEY FINDINGS INCLUDE
- Structured liquidity programs 40, which is an increase of 33% from 2014
— 58% share repurchases
— 42% third-party tender offers - Secondary transaction volume: $1.6 billion
- Median transaction size: $24 million
AVERAGE COMPANY PROFILE OF NPM’S CLIENTS IN 2015:
- Company age: 9 years
- Number of employees: 440
- Primary capital raised: $350 million
- Valuation: $1.8 billion
PROFILE OF ELIGIBLE SELLER POOL
- 67% current employees
- 22% former employees
- 11% investors
“2015 was a strong year for private company liquidity on our platform, with data showing the average company profile of our clients is similar to the traditional profile of a public mid-cap company,” said Bill Siegel, Head of NASDAQ Private Market. “We believe that a company’s choice to remain private has gone beyond trend, and we anticipate that 2016 will be another year of market growth and structural evolution of the private markets.”
Mr. Siegel added, “A number of late-stage private companies see value in helping their employees unlock the value of their equity. Today the competition for top-talent is incredibly fierce, and conducting recurring shareholder liquidity events allows these private companies to compete more effectively, particularly with public companies that can offer stock compensation.”
About NASDAQ Private Market:
The NASDAQ Private Market, LLC is the premier equity services provider to private companies. Our end-to-end solution enables private companies to digitize, integrate, and control all of their equity-related functions, including cap table management, shareholder liquidity, investor relations, and capital raising. Whether a company seeks to optimize an eventual IPO or remain private permanently, NASDAQ Private Market provides comprehensive capital market support to meet its needs. For certain eligible investors and shareholders, NASDAQ Private Market is a place to discover and engage with some of the most exciting private companies. The information contained herein is provided for informational and educational purposes only. None of the information provided is an offer or solicitation to buy or sell any securities, or to provide any legal, tax, investment or financial advice. The NASDAQ Private Market, LLC is not: (a) a registered exchange under the securities exchange act of 1934; (b) a registered investment adviser under the Investment Advisers Act of 1940; or (c) a financial or tax planner, and does not offer legal advice to any user of the NASDAQ Private Market website. Securities-related services offered through SecondMarket are provided by SMTX, LLC, a registered broker-dealer, which is a member FINRA/SIPC and a wholly-owned subsidiary of The NASDAQ Private Market, LLC. Securities-related services offered through The NASDAQ Private Market, LLC are provided by NPM Securities, LLC, a registered broker-dealer, which is a member FINRA/SIPC and a wholly-owned subsidiary of The NASDAQ Private Market, LLC. Securities offered through SMTX, LLC and NPM Securities, LLC are not listed or traded on The NASDAQ Stock Market LLC, nor are the securities subject to the same listing or qualification standards applicable to securities listed or traded on The NASDAQ Stock Market LLC. Data collected from the SecondMarket platform may include transactions conducted through current and former affiliates of SecondMarket. To learn more, visit www.npm.com.