PrimaryMarkets Ecosystems
PrimaryMarkets provides SECURE, CONTROLLED and private trading hubs for securityholders of Companies and Funds.
Today, an unlisted Company or Entity with a wide shareholder/unitholder base usually comprised of early stage investors, supportive securityholders
or current and former employees has no formal mechanism for these existing securityholders who want to sell their securities.
Securityholders do not have any real means of independent price discovery for the value of their securities nor a repository to access current
corporate documents.
PrimaryMarkets can provide the platform for Where an Entity that wants to create an orderly and informed environment marketplace
for its securityholders to trade with transparency, independence, confidence and confidentiality.
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Ecosystems provided by PrimaryMarkets
FAQs
Why are private liquidity events for Unlisted Companies becoming the "norm"?
- Unlisted Entities can come under pressure from founding/early stage investors and employees/ex-employees to provide liquidity events over
time.
- Secondary security trading solutions now form part of an Entity’s strategy to provide access to liquidity for securityholders.
What are the advantages of a "private liquidity event" with PrimaryMarkets?
- An Entity, when working with PrimaryMarkets, has overall control of the process whilst addressing the needs of existing securityholders.
- The Entity gets to enforce security trading conditions as stipulated in the constitution/shareholder agreement.
- The Entity can also create other transaction rules for the sales – timing, number of securities sold, information disclosed, who gains
access to the data and sales process, minimum buy size and other specific Entity requirements.
How does a "private liquidity event" affect valuation?
- Typically, secondary securities trading does not affect Company valuations because the percentage of the capitalisation and distribution
table being transacted is usually very small, represents one data point and, where applicable, is rationally interpreted by savvy investors
as a liquidity point for early stage investors.
What is "Liquidity Premium"?
- When the liquidity premium is high, the security is said to be "illiquid", and buy-side investors demand additional compensation for the
added risk of investing in unlisted securities over a longer period of time.
- With PrimaryMarkets’s liquidity services, ‘healthy markets’ are enhanced by more accurate pricing discovery
and focus on the operating performance of the underlying unlisted investment rather than timing risks to a return of capital.
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