A unicorn morning
Anamika Dey, editor
The CEO of an alternative trading platform aims to transform private equity investing in order to address the challenges faced by a stagnant initial public offering market.
In the spring, Kelly Rodriques from Forge Global teamed up with Accuidity to introduce the Forge Accuidity Private Market Index.
The ultimate objective: Facilitate broader investor access to high-potential startups.
According to Rodriques, this financial innovation is currently underway and is of significant importance. He shared this insight during an interview with CNBC’s “ETF Edge.”. There is a future where index products and other financial innovations are opening up opportunities for all investors to get involved.
The Forge Accuidity Private Market Index is comprised of 60 private companies, such as SpaceX, Stripe, and Epic Games, as stated on Forge Global’s website. However, currently, access remains restricted to regular investors.
According to Rodriques, the current regulations require individuals to possess a minimum net worth in order to meet the criteria for being accredited.
That implies that even with Forge’s new initiative, only those with significant financial resources can acquire shares, including institutional investors and individuals with a high net worth. However, individuals, whether they are accredited or not, have the opportunity to sell their shares of private companies on the platform. However, those same companies still have the right to decline transactions on the platform.
Rodriques is optimistic that as interest in private investing grows, there will be a shift in regulations.
“In the near future, we envision a world where individuals who are not accredited investors can participate in a diversified portfolio of index stocks, allowing them to invest in a wide range of companies and themes, similar to how it is done in the public market. This will greatly increase accessibility and opportunities for everyone,” he stated.
Source : CNBC News
