A new venture from alternative trading firm NEO aims to modernize the private placement process.
Companies seeking private capital can now connect to investment dealers through its new platform, known as DealSquare, which aims to provide a more efficient venue for issuers, dealers and investment advisors to carry out private placements.
“DealSquare will support the entire private placement process from marketing investment opportunities and electronically managing the due diligence and subscription process, through to efficiently closing the deal,” the Toronto-based firm said in a release.
Dealers that connect to the platform can publish their approved deals to their investment advisors, with the option of opening their deal rooms to other dealers too.
“It’s a win-win for capital raisers, dealers, investment advisors and investors,” NEO said, noting that the new market for private placements will lower the costs, and operational risk, of obtaining private capital.
“With DealSquare, we simplify the private placement exchange and transaction between dealers and advisors in a fully digitalized and efficient online environment,” said Peter-Paul Van Hoeken, managing director of DealSquare, in a statement.
To start, three investment dealers have joined the platform, which features six offerings, including a couple of mortgage funds and a couple of offering memorandum (OM) funds.
The platform was developed by NEO and Silver Maple Ventures Inc., which also built private markets investment platform FrontFundr.
“Private market investment continues to outpace the public markets; however, access to private offerings has been fragmented, marketed through word-of-mouth and transacted using archaic technology. Today, that changes,” said Jos Schmitt, president and CEO of NEO, in a statement.