Liquidity, Deal Flow, and Data
In 1998, private equity was becoming a core asset class for sophisticated investors along with domestic stocks, international stocks, fixed income and real estate.
Our vision was that private equity investors would increasingly seek financial services that were available in core asset classes – liquidity, deal flow, data and comprehensive risk management products.
NYPPEX was the pioneer in developing those specialized private equity market services and the first intermediary to execute secondary transfers of interests in both private equity funds and private companies.
Comprehensive Risk Management Products
Private fund strategies include buyout, venture, fund of funds, real estate, energy & natural resources, infrastructure, distressed debt, secondary, mezzanine, hedge and their respective derivative instruments such as total return swaps.
Private company industries include telecom, media, industrials, manufacturing, clean tech, oil & gas, mobile, life sciences, SaaS, cybersecurity, ecommerce, health and wellness, fintech, artificial intelligence, big data, robotics and their respective derivative instruments such as call and put options.
About the NYPPEX QMS Marketplace
We operate the NYPPEX QMS Marketplace, which focuses on
- Issuer-controlled secondary private equity transfer programs
- Enterprise level data and cyber security systems - to protect client’s non-public confidential information
- IRS Regulatory compliance – our IRS 1.77 private letter ruling provides a high level of comfort to clients
- Private transaction efficiency – to minimize client time required in transactions
- Probable price execution – through proprietary price data and proactive marketing
Since 2006, leading financial institutions have selected NYPPEX to provide their clients with recurring access to the secondary private equity markets worldwide in a fair and ethical manner.
All Transaction Sizes
Private Wealth
< $5 million
Mid-Institutional
$6-25 million
Institutional
$26-100 million
Mega Institutional
$100+ million
Our clients include:
- Financial institutions
- Alternative investment firms
- Private companies
- Qualified investors
- Asset Managers
- Broker-Dealers
- Corporations
- Endowments
- Foundations
- Family Offices
- Government Sponsored Enterprises
- Insurance Companies
- Public & Private Pensions
- Secondary Funds
- Sovereign Wealth Funds
Price Data on Over 9,500 Alternative Funds
We maintain proprietary secondary market price indications on over 9,500 private equity funds and 4,500 private companies headquartered in 110+ countries.
NYPPEX Data™ enables investors to support GAAP and IFRS compliant financial statements by taking into consideration our secondary bid indications to independently estimate fair values in accordance with FASB Topic 820 (fair value measurement and disclosure guidelines).
NYPPEX PLR Facilitates IRS Compliance
In 2004, the U.S. Internal Revenue Service granted a rare Private Letter Ruling to the NYPPEX Qualified Matching Service (“NYPPEX QMS”) in connection with U.S. Treasury Regulation §1.7704-1(g) (“IRS 1.7704”).
IRS 1.7704 prohibits general partners from actively participating in secondary interest transfers in their sponsored partnerships and requires transfers to be categorized under an available safe-harbor exemption (the “Publicly-Traded Partnership Rules”).
If the IRS finds that a private partnership violated IRS 1.7704, the partnership will be re-classified and taxed as a corporation – retroactive to the date of the first violation. We believe this would lead to a class action lawsuit by investors against the general partner for gross negligence.
International Recognition as a Leader
In 2014, the Shanghai Municipality in Shanghai, China approved NYPPEX as one of the first foreign financial firms accepted into the Shanghai Free-Trade Zone. (Note: The others were Oaktree, Citadel and Man Group)
The Shanghai Free-Trade Zone (SFTZ) is the first free trade zone in mainland China and permits tax-free foreign exchange and yuan convertibility. The SFTZ is a testing ground for various economic and social reforms in China.
NYPPEX is often quoted in the media, which has included – Dow Jones, Bloomberg, Financial Times, Pensions & Investments, Reuters, Private Equity International, China Daily, Al Jazeera, The Moskow Times and the India Times.
