To facilitate that liquidity, iCapital is partnering with Nasdaq Private Market to create a fintech platform designed to solve the illiquidity problem.
Their goal: build a digital secondary market where high-net-worth investors in sponsored funds can find potential buyers long before underlying funds would liquidate.
“We are democratizing what’s been an institutional asset class,” Calcano said. “High net worth individuals should be about to get out of investments at their own pace. We decided to partner with Nasdaq, which is synonymous with providing liquidity.”
The new platform will integrate iCapital’s platform technology with Nasdaq’s qualified matching service, to help investors put private holdings up for auction. The qualified matching service will be fully digital, with advisors to high net worth investors getting access to Nasdaq’s existing list of qualified potential buyers.
The partnership, which is expected to go live later this year, is focused on iCapital funds. But Nasdaq could easily create similar platforms for other fund families or alternative asset classes.