Instinet Launches Digital Private Investment Platform06.21.2022
Instinet Incorporated (“Instinet”) announced the European launch of Instinet DealMatch, a new digital investment platform that connects institutional investors to private investment deals that are aligned to their objectives. Nomura serves as the founding deal agent on the platform, and provided expert input during the build process to ensure that the platform provided an optimal investor, as well as deal agent, experience. Instinet DealMatch is an easy-to-use platform that offers:
- A faster, more efficient way for institutional investors to connect, establish preferences, learn about new opportunities, place orders, track their progress, and complete investments.
- A simplified and streamlined distribution that assists Nomura, the deal agent, to deliver their corporate issuers with access to a much larger and more diverse pool of investors.
- An opportunity for investors to set preferences, tailoring the deal recommendations that are offered to them so they see the most appropriate opportunities.
Turning an OTC process into digital workflow
Private capital raising is an increasingly powerful source of diversification and alpha generation for institutional investors, but the deal process has not materially changed over many decades; it is still highly manual and the process can be time consuming. Using a digital platform as a hub for virtual idea sharing, the communication of deal memos, the arrangement of real and virtual roadshows, the registration of indications of interest, placement of orders, and finally, the deal execution itself, can unlock efficiencies, speed up time to market, and broaden access to a much wider array of investors than previously possible.
Ralston Roberts, Global CEO of Instinet, said: “At Instinet, our first order of business has always been to help our clients to access and execute their investment strategies as efficiently and effectively as possible. Instinet pioneered electronic trading over fifty years ago, so technological innovation has been a part of our mission ever since. Working alongside our parent, Nomura, we are able to lever the deep private capital expertise and corporate issuer relationships that they bring to bear in order to evolve the investment process for this important asset class. It is the right time to digitalize and democratize the private equity markets eco-system. We’re very excited to be part of yet another market evolution.”
Charles Pitts-Tucker, Nomura Head of Investment Banking, EMEA, said: “We are delighted to offer our clients the opportunity to raise equity capital privately via the ground-breaking digital platform of Instinet DealMatch.”
Myles Evanson, Nomura Head of Private Placements, EMEA said: “As private placement activity continues to grow significantly in Europe, it is critical to ensure that our execution capabilities match this trend. Instinet DealMatch’s streamlined marketing and deep distribution capabilities provide companies looking to raise capital with access to a larger and more diverse pool of potential investors, combined with a digital workflow to significantly increase efficiency and transparency of the execution process. We believe this innovative digital platform will offer even greater added value to our private placement clients in Europe.”
The intuitive graphic user interface was designed to greatly streamline workflow and centrally manage all aspects of the private equity investment lifecycle in one place. It should shorten the time it traditionally takes to execute a deal, and is a more sustainable solution than other more analog, over-the-counter processes that still require trafficking paper documents between parties.
With Dmitry Kay, Co-head of EM FX Trading, Europe, UBS
It is the first liquidity-seeking algorithm on Atlas, the equities trading platform introduced in 2019.
Morgan Stanley completed the acquisition of E*TRADE in 2020.
The platform provides a quick way to create and share trusted data through machine learning and automation.
The Federal Reserve said the pilot exercise will be launched in early 2023.