Nasdaq Inc. has partnered with major American lenders to move out its Private Market into a standalone firm, the WSJ reported.
Under the agreement, Nasdaq Private Market will become an independent entity where a group of banks can invest. The bank list includes Citigroup Inc., Goldman Sachs, Morgan Stanley, and SVB Financial Group.
Nasdaq targets the agreement to make its Private Market the dominant player for the trading of pre-initial public offering shares, noting that its partner banks have clients that cover startups and major investors who could bring massive amounts of distribution.
Nasdaq said its platform is the top player for trading private company shares, where holders are allowed to sell within a specific period. It recorded 57 private-company secondary transactions in the first semester of 2021.
Private company shares are currently typically sold to investors who meet specific criteria on wealth and are not usually available to individual investors.
Nasdaq in 2015 acquired rival SecondMarket Solutions Inc. and integrated it into the business.