NYSE Euronext will oversee the formation of a private securities platform after agreeing to a strategic partnership with ACE, a provider of private market technology.
The two groups will introduce a new, independent marketplace for private securities, with the aim of making the private market more efficient and transparent.
ACE currently provides investment banks and others with transaction and marketing tools for private deals, alongside an online portal that allows investors to browse and review private investment opportunities. The group works exclusively with broker-dealers to sell private shares or debt to institutional investors, focusing on companies seeking to raise at least $5 mn.
Under the terms of the partnership, NYSE Euronext has acquired a minority stake in ACE, which will help ACE to pay for doubling its staff numbers and the development of other services, including investor relations tools.
‘The partnership with ACE is a strategic extension of our institutional capital formation expertise in the public market,’ says Scott Cutler, executive vice president and head of global listings at NYSE Euronext. ‘Our goal is to bring great efficiencies and transparency to the institutional private market, just as we have brought to the public market.’
Peter Williams, CEO of ACE, adds that his firm ‘could not have found a better strategic partner than NYSE Euronext. Partnering with the world’s most recognized brand in capital formation and leveraging its full suite of resources will truly transform the private capital landscape.’
The move is the latest in a string of acquisitions made by US public exchange operators, which saw industry margins evaporate as volumes fell and trading in dark pools grew this year. Last month, BATS Global Markets and Direct Edge Holdings announced they would merge, creating the second-largest stock exchange operator in the US. Earlier this year, NASDAQ OMX Group made a series of purchases, including online marketplace SharesPost and Treasury bond trading platform eSpeed.
