This access, which results from a new partnership between the two companies, provides companies and shareholders with solutions designed to help them manage their cap table, diversify their investor bases and retain employees, the companies said in a Thursday (July 31) press release.
These solutions include tender offers, secondary sales and other issuer-led structured liquidity events; controlled shareholder transactions for employees, founders or early investors; access to more than 19,000 institutional investors that are looking to invest in private companies; and private market transactions, according to the release.
SVB serves companies in the “innovation economy,” while Forge provides private market participants with marketplace infrastructure, data services and technology solutions, per the release.
Silicon Valley Bank President Marc Cadieux said in the release that secondary market liquidity has become a “key need” for the bank’s clients at a time when companies are staying private longer.
“By introducing private companies to Forge’s platform, we’re creating more opportunities for our clients to access the capital they need to scale with confidence and offer their valued employees liquidity options,” Cadieux said.
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Eric Thomassian, executive vice president of private company relations at Forge, said this partnership will help meet the growing demand for “trusted, flexible liquidity solutions.”
“Forge is proud to work with Silicon Valley Bank to offer their clients tailored capital solutions that support long-term company growth while meeting the liquidity needs of employees, investors and founders,” Thomassian said.
It was reported in June that private equity groups are holding on to their portfolio businesses much longer than anticipated because high interest rates, stop-and-start trade policies and geopolitical turmoil have eaten away at company valuations.
Forge said in a Wednesday (July 30) earnings release that it is positioned to address the opportunities in this environment with a newly launched marketplace experience and other resources.
“Across four key verticals — trading, data, custody and wealth — we see accelerating demand for the modern private market infrastructure that Forge is delivering,” Forge CEO Kelly Rodriques said in the release.
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