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Market Commentary

NYPPEX Reports 2019 Revenue Increased 77% ​

May 7, 2020
  • NYPPEX Holdings, LLC, a leading broker and data provider for secondary interests in private equity funds, shares in private companies and their derivative instruments, announced 2019 revenue increased approximately 77% as compared to 2018.
  • “Although we are pleased with our financial performance in 2019, significant annual revenue growth is nothing new for brokers that pioneer new securities markets. This has been demonstrated by well-known brokers today that pioneered new markets in stocks, bonds, options and credit default swaps”, stated Laurence Allen, CEO of NYPPEX Holdings, LLC.
  • NYPPEX estimates that secondary private equity transaction volume in 2019 for the industry worldwide was approximately $72.1 billion for interests in private equity funds and $38.7 billion for shares in private companies, a 32% increase compared to 2018.
  • “For an approximate $4.7 trillion alternative asset class, $72.1 billion represented an annual turnover rate of only 1.5% for 2019. We project annual turnover will increase to 4% and then to 9% in the near future, as investors more actively manage private equity risk and seek exits from the secondary market. We believe greater investment risk management is typical as an asset class matures”, stated Laurence Allen.
  • “Due to COVID-19, we are preparing for economic recessions in 2020 and 2021. We believe this will cause IPO and M&A exit volumes to decline and secondary market exits to increase for the alternative asset class”, stated Laurence Allen.
  • “A particular challenge for investors that seek distributions from 2016-2019 vintage private equity funds, is based on our belief that many of those funds may have overpaid for investments in recent years. To illustrate, we estimate average Enterprise Value/EBITDA multiples have been 11x or greater for approximately 30% to 50% of those funds as compared to Enterprise Value/EBITDA multiples of 7-9x for over 70% of 2003-2004 vintage private equity funds”, stated Laurence Allen.
  • For further information about NYPPEX Holdings, please request our 2019 annual report, contact Investor Relations at ir@nyppex.com or visit www.nyppex.com.

About NYPPEX Holdings


Wealthtech, Big Data, Capital Markets. NYPPEX Holdings is a financial technology firm focused on brokerage, transfer administration, data and media for the developing secondary private equity markets worldwide.

A Leading Liquidity Provider. The company operates the NYPPEX QMS Platform whose core service is providing liquidity to privately transfer interests in private equity funds, securities in private companies and their respective derivative instruments.

Pioneering a New Private Market. Our technologies along with our high touch services are providing a new generation of private wealth advisors and portfolio managers the opportunity to more actively manage risk and optimize returns in alternative asset portfolios.

Proprietary Financial Services. Our specialized private market liquidity services rely on (a) exemptions pursuant to Section 4(a)(2) and 4(a)(1) of the Securities and Exchange Act and Rule 506 of Regulation D as amended, (b) a private letter ruling to NYPPEX regarding the NYPPEX Qualified Matching Service from the U.S. Internal Revenue Service pursuant to Internal Revenue Code §1.7704, which provides a high level of comfort to legal and tax advisors, and (c) other applicable regulations based on the nature of the restricted interest, jurisdiction of the issuer and other facts and circumstances.

Important Clients. Our partners and customers are private wealth advisors, institutional investors, financial services firms, high net worth private clients, alternative investment firms and private companies worldwide.

We are regulated in the United States by the SEC and FINRA. www.nyppex.com

NOTICE:

This financial information provided herein is unaudited and subject to change without notice. This market commentary is for informational purposes and qualified clients only. It is not a solicitation of a private transaction which may only be done through documents created by the private fund or private company and only in jurisdictions where permissible. Private placements may contain a high degree of risk. The information provided herein is incomplete and may include certain non-GAAP financial measures. This commentary may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers are cautioned to review our legal and regulatory disclosures contained in our 2019 annual report and to not place undue reliance on this commentary’s information or forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date such forward-looking statements were made.

Copyright 2020. NYPPEX Holdings, LLC. All rights reserved. www.nyppex.com
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