NYSE Euronext said today that it will take a stake in ACE Group Inc. as part of a joint venture that aims to enhance the efficiency and transparency of the U.S. private placement market.
The NYSE announced a strategic partnership with ACE, which operates a transaction management platform for private placements of equity, debt and other securities, that will see them team up to establish an independent “technology backbone” for new issuances of private securities.
Under the terms of the arrangement, NYSE Euronext has acquired a minority ownership position in ACE, although the terms of the investment were not disclosed.
ACE provides investment banks and other placement agents with transaction management and marketing tools for new issuances of private securities; and, provides a platform to institutional investors and other accredited investors for identifying and reviewing private investment opportunities.
The firms say that their joint venture aims to bring greater transparency and efficiency to the private market for issuers, investors and firms.
“The partnership with ACE is a strategic extension of our institutional capital formation expertise in the public market,” said Scott Cutler, executive vice president and head of global listings at NYSE Euronext.
“Our goal is to bring greater efficiencies and transparency to the institutional private market, just as we have brought to the public market. ACE has taken a unique approach to improving the market for private placements and our goal is to make the private placement process more transparent, efficient and auditable for issuers, investors and placement agents,” he said.
“Partnering with the world’s most recognized brand in capital formation and leveraging its full suite of resources will truly transform the private capital landscape,” added Peter Williams, CEO of ACE.