EquityZen is broadening pre-IPO access to RIAs and Family Offices through a new partnership with Addepar, according to a note from the company. Addepar is a Wealthtech management platform that specializes in data aggregation, analytics, and performance reporting. Currently, $1.7 trillion in assets are tracked on the platform.
Through a recently launched Marketplace, Addepar clients who advise and manage assets will now have access to EquityZen’s private securities offerings, typically securities issued under Reg D. EquityZen apparently has experienced their largest volume of buyers and seller transactions in May – more than any other time in the company’s history. As more companies seek to remain private as long as possible, due to the excessive cost of going public, private marketplaces have risen to fill the liquidity gap.
“We have seen growing interest from advisors looking for differentiated and compelling alternative investment opportunities for their clients. Given the current market environment, many private companies are trading at greater discounts, which has created attractive buying opportunities,” said Phil Haslett, EquityZen’s Chief Revenue Officer. This strategy has proven fruitful for EquityZen investors. Since 2013, EquityZen has produced a 43% realized return for investors across 37 investment exits, resulting in a net IRR of 25%.”
In addition to private security opportunities, EquityZen’s Knowledge Center provides research and resources to help educate the advisor community on private market investments.
“Having placed over 11,000 private market transactions in over half of the top U.S. tech unicorns1, our clients look to us to be a thought leader in the pre-IPO market,” added Davda.
EquityZen also provided additional platform stats:
- EquityZen has a secondary platform for pre-IPO shares and has worked with half of all unicorns on over 11,000 private placements worth $575 billion in total market cap of transacted private companies. Their secondary marketplace sells pre-IPO shares with a minimum investment of $10,000.
- EquityZen is seeing the price of late-stage pre-IPO shares (for unicorns) on the secondary market trading at a 25-40% discount off their last funding round. EquityZen saw its largest volume of buyers and sellers in May in their history.
- Possible IPOs in 2020—Actifio, AppLovin, Asana, Desktop Metal, Druva, JFrog, Sprinklr, Vacasa, Velodyne LiDAR.
The move by EquityZen comes following the announcement that SharesPost, another private securities marketplace, was acquired by Forge Global for a reported $160 million.