If you have not heard of second market it is an amazing startup started in 2004 for the purpose of providing a secondary market for illiquid, restricted or otherwise private investments. For instance accredited investors could buy and sell interest in companies like Facebook or other high profile companies that are still in the private sector. It is certainly useful in my line of work putting together complicated limited parnterships for real estate transactions that often have no liquidity for investors other than just an exit price from the sale of real estate. SecondMarket offers much needed liquidity to private transactions including but not limited to asset backed securities, bankruptcy claims, limited partnership interests, private company stock, restricted securities, collateralized debt obligations and whole loans. The company received $15 million in VC funding at the begining of the year and offers the following services at its’ website:
* Transparent, competitive and independent sale process – SecondMarket does not engage in proprietary trading
* No heavy lifting for buyers and sellers – our market specialists streamline the process from listing to settlement
* 60 second sign up form to apply for FREE access
About Tod Whipple
[...] the new public you can bet the SEC will continue to investigate private offerings taking place on SecondMarket. In the meantime, Goldman will be securing $1.5 Billion for Facebook overseas. [...]