EDGAR Online moved into the private equity marketplace this month through a partnership with NASDAQ in which EDGAR Online will design and build a reference database of the unregistered securities listed in NASDAQ’s online trading platform called “The PORTAL Market”. It’s a small world of well-heeled, global investors focused on private placement market.
NASDAQ estimates that the amount of equity and debt capital raised using Rule 144A has grown three-fold since 2002 and exceeded $1 trillion in 2006 for the first time. In the first half of 2007, global equity and debt capital raised in conjunction with a 144A tranche was almost $1 trillion, a 43% increase over the first half of 2006. Trading in these private offerings, called 144A securities, is restricted to qualified institutional buyers (QIBs) with a minimum of $100 million to invest. Individual investors can only tap into 144A securities indirectly, by holding stock in a fund managed by a QIB.
The PORTAL has helped increase liquidity in 144A securities by making 144A secondary trading more efficient and transparent. It connects companies, investors, and advisors, such as investment bankers and general counsel, who can negotiate and complete deals online.
The partnership with NASDAQ is based on EDGAR Online’s expertise in developing its own massive database of financial data on global public companies, and its expertise in online delivery and analytical tools. “The data solutions we will build with NASDAQ will enhance the investment decision making process and, ultimately, contribute to building transparency for capital markets here and abroad,” says Philip Moyer, EDGAR Online President and CEO.
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