The CEO of an alternative trading platform wants to revolutionize private equity investing to help ease a stagnant initial public offering market.
So Forge Global’s Kelly Rodriques partnered with Accuidity to launch the Forge Accuidity Private Market Index this spring.
The ultimate goal: making it easier for more investors to get into unicorns.
“This is a major financial innovation that’s happening,” Rodriquez said this week on CNBC’s “ETF Edge.” “In the future… index products and other financial innovations will make it possible for every investor to participate in.”
The Forge Accuidity Private Market Index consists of 60 private companies including SpaceX, Stripe and Epic Games, according to the Forge Global website. But as of now, ordinary investors are still unable to enter.
“Today’s rule is that you need to have a minimum net worth to meet the threshold to be recognized,” Rodriquez said.
This means that even with Forge’s new move, only institutional investors and high-net-worth individuals will be able to buy shares. But anyone, accredited or not, can sell shares in their private companies on the platform. However, these companies still have the right to refuse transactions on the platform.
Rodriquez hopes these regulations will change as private investment interest increases.
“We will soon see a world where non-accredited investors can go into a basket of index stocks and place bets on 60 to 70 names, themes, just like they do in the public markets, and that will really open up door.
Disclaimer
About The Author
