Momentum in activity in the private company secondary market continues in the first half of 2016 amidst softening valuations and a slowdown in the IPO market. Program volume by dollar amount and the number of secondary liquidity events that the NASDAQ Private Market helped facilitate appeared to increase year-over-year in 1H 2016. Historically, the second half of the year is seasonally busier than the first half, as companies typically look to conduct liquidity events closer to year-end.
Here are some of the key findings from our 2016 Mid-Year Private Company Report:
- Secondary liquidity program total: 12, a 20% increase from 1H 2015
- Program volume total: $544 million, a 136% increase from 1H2015
- 67% of the programs were structured as share repurchases by the private company vs third-party tender offers. Share repurchases are up 50% year-over-year and up 58% since the second half of 2015
- Average valuation of companies using the NPM platform for secondary liquidity programs in 1H 2016 rose to $3.6 billion, up from $2.6 billion in 1H 2015