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Market Commentary

NYPPEX Announces zero-fee QMS Service

September 03, 2021

  • Strengthens its Leadership in Providing Liquidity to Investors in Alternative Funds.
  • New Program Provides Unmatched Value to Institutional and Private Client Investors

September 1, 2021. NYPPEX, one of the world’s leading providers of secondary private equity market liquidity, announced a new zero-fee program for its leading Qualified Matching Services (“QMS”) under IRS Regulation 1.7704 for secondary interest transfers in alternative investment partnerships.

The new zero-fee program applies to all transaction sizes and all partnership strategies including but not limited to fund of funds, buyout, venture, real estate, natural resources, infrastructure, distressed debt and hedge.

NYPPEX believes this is an opportune time to introduce its zero-fee QMS program as it believes that selling limited partners are at risk in 2021 of not receiving settlement approvals from underlying general partners that have no available safe-harbor exemptions under IRS 1.7704.

NYPPEX believes this scenario may be caused by limited partners that were unable to access secondary liquidity in 2020, combining with more limited partners seeking secondary interest transfers in 2021. Together, this pent up transfer volume may cause private partnerships to reach their safe-harbor secondary transfer limits earlier in 2021.

The NYPPEX solution is to provide a QMS safe-harbor exemption to qualifying partnerships, which may enable more investors to access secondary liquidity and settle prior to 2022.

Further, NYPPEX believes the opportunity for secondary liquidity increases the probability of investors making capital commitments to new partnerships.

For more information, please contact or +1 (914) 305-2825.

i. The new zero-fee QMS program applies to use of the NYPPEX QMS at zero-fee provided that NYPPEX serves as agent at its standard fee for a secondary interest transfer.

About NYPPEX Private Markets

NYPPEX operates a global private marketplace that provides the opportunity for qualified investors to access secondary liquidity in alternative investment funds and private companies in a fair and ethical manner.

Its clients include alternative investment funds, financial institutions, endowments, foundations, institutional investors, family offices, private clients and their respective advisors worldwide.

Since 2004, the NYPPE QMS™ has been formerly recognized by the U.S. Internal Revenue Service as a Qualified Matching Service for private partnerships though a private letter ruling under Internal Revenue Code §1.7704.

Its private securities are privately offered only to qualified investors through NYPPEX, LLC and only in jurisdictions were permitted. NYPPEX is regulated in the U.S. by the SEC and FINRA. Member FINRA, SPIC. Copyright 2021 NYPPEX Holdings, LLC. All rights reserved.

Disclosure: Private placements are illiquid, speculative and investors may lose their entire investment.

This email is for informational purposes only and only for the addressee specified, which we understand to be a Qualified Purchaser and holder of private equity fund assets. It does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security which may only be done through an issuer’s offering documents and in jurisdictions where permissible. Nothing contained in this email or subsequent document constitutes investment advice or offers any opinion with respect to the suitability of any security. The views expressed on this email and subsequent documents should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this invitation, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed on this invitation or subsequent report by NYPPEX were prepared based upon the information available to NYPPEX at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.