In a new development that will allow investors to publicly sell and purchase their hard-to-trade assets, Aussie entrepreneur Gavin Solomon has created the PrimaryMarkets platform.
The platform is described by many as essentially the eBay of unlisted securities and investments. It went live this week and already has 40 listings to go live on the website.
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A former lawyer, Solomon believes his platform is one step ahead of the United States stock exchange Nasdaq, which is working on unveiling a similar platform in the U.S. Since 2011, over US$4.5 billion in transactions have been done through SecondMarket and SharesPost, both of which expedite the trade of private securities by connecting buyers and sellers offline.
“I’d been following SecondMarket and SharesPost in the U.S. for the past six years and I myself have been in the equity capital market for many, many years,” said Solomon. “Today we’re doing a whole lot of trading in unlisted shares and warrants. Facebook raised $500 million pre-IPO, and that got me thinking that there was no actual market for a lot of these assets.”
PrimaryMarkets will specialise in the five primary pillars of investment — funds, fixed income, unlisted securities, direct assets and commercial transactions. It offers buyers efficient access to review unlisted and liquidated investments across its five pillars.
It has already raised $1 million from professional investors — some of which represent investment banking firms — and has created relationships with several different financial market participants who will become intermediary members of PrimaryMarkets to support clients who use it.
Most members will be wholesale or sophisticated investors, and sellers must be approved and analysed by the PrimaryMarkets team. Although there are no joining or purchase fees, it will raise money by taking commission from the sellers after a deal has been made.
Source: Australian Financial Review