Private Company Platforms: NYSE ACE Portal and NASDAQ Private Market

February 2014

At a glance

Private Company Platforms: NYSE ACE Portal and NASDAQ Private Market

The broadening of private company securities sales has helped drive the development of two new offerings from the NYSE and NASDAQ OMX.

Observations from the front lines provides PwC's insight on current economic issues, our perspective regarding the business impacts, and actions we have seen companies taking to effectively address those issues.

Private Company Platforms – NYSE ACE Portal & NASDAQ Private Market

Both the NYSE’s ACE Portal and NASDAQ’s OMX’s Private Market platforms are designed to provide private companies with either a stepping-stone to going public, or in many cases where companies wish to remain private, companies can improve their level of capital markets readiness with respect to a broader set of potential investors to access capital.

Highlights in this issue:

  • A private company platform allows private companies to raise capital from pre-screened investors and through approved placement agents and investment banks, manage their stakeholders, and provides for liquidity management
  • The NYSE announced an investment in ACE Portal in September 2013, and has a private company securities investment platform with $850m in private company deals available for investment (as of December 2013)
  • NASDAQ OMX announced a joint venture partnership with SharesPost in March 2013, and expects to launch a private company platform in early 2014

Read other issues of Front lines:

Accounting for income taxes in cross-border transactions

August 2015

The acquisition of a foreign business can introduce complex financial reporting challenges when accounting for income taxes.

Financial reporting implications of cloud computing

May 2014

Unexpected expenditures and accounting adjustments – like those arising from environmental obligations – can dramatically impact capital budgeting and future earnings. Companies have found that practices vary widely across sectors and both engineering and accounting expertise are critical in assessing environmental obligations.

Private company accounting alternatives on goodwill

March 2014

Recently the FASB issued an Accounting Standards Update to permit private companies to amortize goodwill acquired in a business combination, and to apply a simplified goodwill impairment model. This change is intended to help reduce reporting complexity for private companies; however, private companies should carefully consider this alternative, especially for those considering an initial public offering.