Nasdaq Inc on Tuesday cooperated with large U.S. banks, including Goldman Sachs and Morgan Stanley, to isolate its platform that permits individuals to trade in shares of privately owned businesses, which have seen solid premium from investors looking for grandiose profits from investments.
Since interest rates were sliced to near zero across the globe toward the beginning of the Covid pandemic, investors have searched out different sources of yield, making interests in private companies an alluring choice.
As a component of the arrangement, Nasdaq Private Market will turn into an independent, free company that will get investments from SVB financial Group, Citigroup Inc, Goldman Sachs Group Inc and Morgan Stanley, the stock exchange operator said on Tuesday.
Financial terms of the deal were not revealed.
The platform will oversee privately owned business stock transactions like tender offers, auctions and investor block trades, Nasdaq said.
Various companies, including BlackRock Inc and JPMorgan Chase and Co are hoping to give their customers a more extensive access to putting investments into privately owned businesses.
BlackRock, the world’s biggest asset manager, said last month in an investor presentation that it was pushing more forcefully into private market ventures, which recorded an 18% growth last year, double the pace of the more extensive industry.
In February, JPMorgan put investment into fintech startup Zanbato with an end goal to make a presence in private stock trading.
Nasdaq Private Market, which was set up in 2014, will hold its core working groups, Nasdaq said, and will keep its offices in New York and San Francisco.
