Nasdaq Private Market (NPM), a leading provider of secondary liquidity solutions to private companies, employees, and investors, announced today that it has added Bank of America as an investor. NPM’s existing investor consortium of premier global financial institutions has helped drive the company’s success since its spinout from Nasdaq in 2021.

This announcement comes following the January 2024 closing of the company’s $62.4 million Series B financing round led by Nasdaq with participation from Allen & Company, Citi, and Goldman Sachs, and with new investments from BNP Paribas, DRW Venture Capital, UBS, and Wells Fargo. NPM plans to leverage Bank of America’s investment to accelerate new product development and global growth.

“We are incredibly proud to welcome Bank of America as an investor. Bank of America and NPM share a vision of creating a more fair, transparent, and efficient private market,” said Tom Callahan, Chief Executive Officer, Nasdaq Private Market. “They join a prestigious consortium of 10 of the world’s most influential financial institutions with a common goal of bringing this $3.5 trillion asset class into the modern age of efficient electronic markets. Together, we are working to ensure entrepreneurs and risk capital can meet more efficiently so the American innovation economy can grow and prosper.”

NPM operates as an independent entity with strong support from its industry-backed consortium of investors. Collectively, the company serves private companies, employees and investors with a high-integrity trading, settlement, data, and wealth platform. Today, the company services some of the world’s most innovative private companies with solutions for the liquidity needs of their employees and institutional investors. The company has executed more than $50 billion in transactional value across 760 company-sponsored liquidity programs and block trades since inception.

“We are pleased to join the consortium of investors in NPM. With the growth of private markets in recent years, Bank of America has been keenly focused on supporting evolution in this space as an active member of the NPM platform. We look forward to developing further scale and electronic efficiencies in this market segment with our clients and partners,” said Sonali Theisen, Head of FICC Electronic Trading and Global Markets Strategic Investments at Bank of America.

NPM’s primary business lines include Company Solutions, SecondMarket™ Trading Marketplace, Transfer and Settlement, Tape D™ Data and Analytics, as well as Wealth Solutions. Its Company Solutions supports private companies using proprietary technology to facilitate tenders, auctions, and pre-direct listing programs. The SecondMarket™ Trading Marketplace is bringing transparency and efficiency to the block trading of private shares with a model fully aligned with the interests of private companies. Its patent-pending Transfer and Settlement technology streamlines the complex, burdensome process of post-match workflows for companies and trading counterparties. Tape D™ Data and Analytics delivers actionable insights into trading activity and private companies for investors. Wealth Solutions is connecting clients with resources to manage their newly earned funds and support tax requirements.

“Bank of America’s investment in NPM builds on the momentum from this year’s Series B fundraising round, underscoring the important role NPM plays as a liquidity solutions provider to private companies,” said Gary Offner, Senior Vice President and Head of Nasdaq Ventures, Nasdaq, and Chairman of the Board of Managers, Nasdaq Private Market. “The board and I are pleased to welcome Bank of America to the NPM consortium, and we look forward to working with them to modernize private markets for the benefit of private companies, their investors, and employees.”

Source: Nasdaq Private Market