Nasdaq partners with major banks to spin out trading platform for pre-IPO stocks

Reuters2021-07-20

(Reuters) -Nasdaq Inc said on Tuesday it had partnered with major U.S. banks, including Goldman Sachs Group Inc, $Citigroup Inc(C-N)$ and Morgan Stanley, to spin out its platform that allows investors to trade in stocks of private companies.

As part of the deal, Nasdaq Private Market will become a standalone, independent company that will receive investments from SVB Financial Group, Citi, Goldman Sachs, and Morgan Stanley.

Financial terms of the venture were not disclosed.

The marketplace can be used by private companies, brokers and investors to access, connect, manage and execute their stock transactions, Nasdaq said.

It added that the platform will manage private company stock transactions such as tender offers, auctions and investor block trades, among others.

The Nasdaq Private Market, which was established in 2014, will retain its core operating teams, the company said, and will maintain its presence in New York and San Francisco.

(Reporting by Sohini Podder; Editing by Aditya Soni and Anil D'Silva)

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