News Column

Liquidnet Expands Capital Markets Business Directly Connecting Institutional Investors and Corporate Issuers More Efficiently

July 22, 2014

Expansion of Team Brings International Capital Markets Experience

Establishes Presence in Silicon Valley and Focuses on Israeli companies to Bring New Sources of Public and Private Liquidity to Buy Side

NEW YORK--(BUSINESS WIRE)-- Liquidnet, the global institutional trading network, continues to invest in its capital markets business with the goal of providing a more efficient capital raising process for public and private companies while delivering additional liquidity to its network of 740 which include the world’s leading asset managers. To support future growth, Liquidnet has assembled a new and experienced team of capital markets professionals, opened a new office in San Francisco and extended its capital markets service to Israeli companies so that private and public companies can connect directly with institutional investors to raise capital. In addition, Liquidnet continues to invest in the build-out of its proprietary technology platform to bring further efficiencies to the equity capital markets.

Liquidnet entered the equity capital markets business in 2009 as a way to source block liquidity from public companies, large shareholders and financial sponsors of public companies such as venture capital and private equity firms. Today, the team has established relationships with these firms to efficiently execute large stock transactions such as At-the-Market (ATM) offerings, corporate share repurchases, large stockholder and control-person sales and venture capital (VC) distributions, directly with some of the world’s leading asset managers who choose to interact with this liquidity through our platform. Liquidnet Capital Markets also provides the opportunity for institutional investors to invest in late-stage, pre-IPO companies* that are located in the US, Israel and certain EMEA countries.

To date, Liquidnet Capital Markets (LCM) has executed transactions representing over $3.5 billion in principal value, including over $1 billion in VC, large stockholder and control-person sales, and over $2 billion in corporate share repurchases. In addition, LCM has been named as an agent on 7 ATM registrations with filed amounts aggregating over $2 billion.

“For the last few years, we have been focused on building a disruptive model that is changing the capital raising process for both public and private companies. By leveraging technology, we have been able to provide greater flexibility, lessen market impact costs, reduce conflicts of interest and give control back to the issuers. In addition, we’ve provided our network of institutional investors with access to new, diverse sources of liquidity,” said Seth Merrin, Founder and CEO of Liquidnet. “We are also helping institutional investors by providing investment opportunities in some of the most promising private companies in the world. With a focus on Silicon Valley, New York and fast growing Israeli companies, we are providing access to unique, pre-IPO investment opportunities and delivering significant value to our community of institutional investors. We consider this model to be a ‘win-win’ for the leading institutional investors who are our Members and the issuers who want to have them as shareholders in their companies.”

Capital Markets Team Expansion

Over the past two years, Liquidnet has enhanced its Capital Markets business bringing in a new and experienced management team led by industry veteran Jay Chandler who will be based in New York. Jay brings more than 25 years of capital markets experience to his role and is focused on identifying opportunities to bring together public and private companies directly with the buy side community. Prior to joining Liquidnet, Jay spent 26 years at Merrill Lynch in both Equity Capital Markets and institutional sales management. He has extensive equity fundraising experience and has worked closely with leading institutional investors throughout his career.

Additional team principals include:

  • John WinklerJohn joined Liquidnet Capital Markets in September 2013 and is focused on technology, healthcare and specialty financials. He spent most of his 24-year investment banking career focused on advising and raising capital for growth companies at firms including Patricof & Co. and Thomas Wiesel Partners. Most recently, he spent eight years at Deutsche Bank where he was a Managing Director in the Equity Capital Markets group and Co-Head of Private Equity Placements.
  • Tim MorganAs Head of Liquidity Solutions, Tim and his team are responsible for covering the Venture Capital community. Prior to joining Liquidnet in December 2013, Tim spent over 30 years leading venture capital services teams and working directly with public and private companies helping them structure liquidity events with premier outcomes. He has managed hundreds of venture fund equity distributions and complex block trade liquidity events, working with GP’s, LP’s and management teams as a member of a private venture firm.
  • Cheryl Knopp – Cheryl brings more than 17 years of financial and legal experience to her role as Head of Equity Transactions Desk. The Equity Transactions Desk is the primary liaison between Liquidnet’s community of asset managers and the issuer and VC community. Joining Liquidnet in 2006, Cheryl has previously held senior roles at Liquidnet including Co-Head of Corporate Strategy and Assistant General Counsel.

    “The unique network we have built provides a way to more efficiently control, manage, and raise capital through Liquidnet for both public and private companies,” commented Chandler. “Our Members interested in these opportunities value the block liquidity sourced from corporate issuers, venture capital and private equity firms as well as other large shareholders. Like institutional investors, our capital markets clients have significant positions and are looking for a way to efficiently execute block-sized trades directly with institutional investors with minimal market impact.”

    * These transactions are done pursuant to exemptions to the SEC registration requirements.

    ABOUT LIQUIDNET

    Liquidnet is the global institutional trading network that connects over 740 of the world’s top asset managers to large-scale trading opportunities across the globe — 43 markets across five continents. With an average trade size of more than 41,000 shares in the US, 57,000 in Canada, and $1.5 million in Europe, Africa and $1.1 million in Asia Pacific*, Liquidnet is a leader in large block trading globally. Liquidnet does this by going beyond what the retail market can provide by defending and securing the integrity and the anonymity of the block trade while continuously looking for ways to bring in new sources of safe, actionable liquidity from asset management firms, exchanges, brokers and corporations. Asset Managers rely on Liquidnet to help them protect the performance of their portfolios by allowing them to enter and exit their portfolio positions more efficiently. For more information on the Liquidnet community, its liquidity, block executions and additional investment capabilities, visit www.liquidnet.com and follow us on Twitter @Liquidnet.

    *as of Q1 2014

    © 2014 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Conduct Authority in the UK, is licensed by the Financial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange, and SIX Swiss Exchange and a member and block agent of Xetra MidPoint order book. Liquidnet Canada Inc. is a member of IIROC and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525, and is registered with the New Zealand Financial Markets Authority as a Financial Service Provider, FSP number FSP3781.



    Liquidnet

    Marisha Mistry, 646-674-2248

    Global Marketing & Communications

    mmistry@liquidnet.com

    Source: Liquidnet


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