NYSE Euronext said Monday that it has formed a strategic partnership with ACE. Together the two companies will establish a technology backbone for new issuances of private securities. Also, according to the agreement, NYSE Euronext has purchased a minority ownership stake in ACE. No financial terms were disclosed. NYSE Euronext is a global operator of public financial markets. ACE is a transaction management platform for private placements.
NEW YORK, September 9, 2013 – NYSE Euronext (NYX), the leading global operator of public financial markets, today announced a strategic partnership with ACE, a leading transaction management platform for private placements of equity, debt and other securities. NYSE Euronext and ACE will establish an independent technology backbone for new issuances of private securities, with the goal of bringing greater transparency and efficiencies to the private market, just as NYSE Euronext has brought to the public market.
ACE provides investment banks and other placement agents with comprehensive transaction management and marketing tools for new issuances of private securities. Through its secure portal, www.aceportal.com, ACE also provides institutional investors, family offices and other accredited investors with a single, centralized platform for identifying and reviewing private investment opportunities. ACE is focused on primary offerings and all offerings listed on ACE are managed by SEC-registered broker-dealers, which is essential to maintaining process integrity and regulatory oversight for the benefit of investors.
Under the terms of the arrangement, NYSE Euronext has acquired a minority ownership position in ACE. Terms of the investment were not disclosed.
“The partnership with ACE is a strategic extension of our institutional capital formation expertise in the public market,” said Scott Cutler, EVP 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.”
With over $1 trillion in annual offerings, the U.S. market for private placements is a large and increasingly attractive opportunity for both issuers and investors. Market efficiency, however, has been limited due to the labor-intensive, one-to-one marketing efforts conducted as a result of regulations and the absence of a centralized infrastructure. The ACE platform was designed to address these challenges. In addition, demand for more innovative technologies in the private market is accelerating.
“We could not have found a better strategic partner than NYSE Euronext,” said Peter Williams, CEO of ACE. “ACE is focused on adding efficiency to the existing institutional private capital markets. In particular, we concentrate on marketed new issuances, which drive economic growth. We are completely independent and do not disintermediate any of the key players in the process. 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.”
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company’s exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext’s equities markets – the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca – represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index. For more information, please visit: http://www.nyx.com
ACE Group, Inc. (ACE) provides a technology platform where qualified investors can seek out investment opportunities marketed by investment banks and other placement agents. ACE provides an unparalleled level of access, transparency, and efficiency to the private placement process. The Company was founded in 2010, and is led by a team of highly experienced investment banking professionals formerly with Bank of America, Citi, Credit Suisse, Donaldson Lufkin & Jenrette, and JPMorgan. ACE is not a broker-dealer and does not offer or sell any securities or engage in the execution of securities transactions through its portal or otherwise. www.aceportal.com