Nasdaq Private Market reports increased activity in private company liquidity programs. Companies that are choosing to stay private longer are using structured and controlled liquidity as a recruitment and retention tool, according to the Nasdaq report. In the first half of 2017, the Nasdaq Private Market Platform had 19 liquidity programs, with a total program volume of $733 million and 1,765 program participants.
62% of the programs were share buybacks and the remaining 38% of the programs were structured as third-party tender offers. These programs had an average size of $40 million. The report notes that most of the 19 programs were employee-focused, where 84% of eligible sellers were current and former employees.
Nasdaq also notes that there are now a wider range of companies that are interested in private liquidity programs—a shift from the predominantly later-stage companies accessing these programs in the past. Companies conducting liquidity programs for the first half of 2017 on the Nasdaq platform had a median valuation of $1.4 billion and median age of 8.5 years.
To read Nasdaq’s report, visit: https://www.nasdaqprivatemarket.com/sites/default/files/1H%202017%20Private%20Company%20Report.pdf