By Matt Jarzemsky
New York Stock Exchange parent NYSE Euronext (NYX) is getting
into the business of helping private companies sell shares.
The largest U.S. stock exchange operator by volume has agreed to
partner with startup ACE Group Inc. to facilitate stock sales by
closely held companies, it said in a statement. NYSE also took a
minority stake in ACE for an undisclosed sum.
Stock-exchange firms are seeking new revenue sources following a
multi-year decline in the number of U.S.-listed shares changing
hands. NYSE rival Nasdaq OMX Group Inc. (NDAQ) announced a similar
move in March, partnering with online private stock-trading company
SharesPost Inc.
Stock investors have looked to pre-IPO companies in recent years
as a way to get in early on businesses they see as poised for big
growth. For example, Fidelity Investments and other mutual fund
firms bought Facebook Inc. (FB) shares before its initial public
offering, according to Wall Street Journal reports.
At midyear, Deutsche Bank AG (DB, DBK.XE) was tracking about 30
technology companies that have achieved $1 billion valuations in
the private market, bankers wrote in a note to clients.
ACE, founded in 2010 and led by former investment bankers,
provides online tools meant to help companies, bankers and
investors participate in sales of stock and debt, as well as other
assets such as stakes in private-equity funds.
Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com
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