Liquidise launches to solve private company equity liquidity
Liquidise, the liquidity platform for private companies, has officially launched having already undertaken three transactions for companies including acclaimed beauty brand Kester Black.
Liquidise Founder and CEO, Andrew Ward (pictured), said while the idea of a private market wasn’t new, Liquidise offered something that is – guaranteed liquidity.
“The problem for private markets has always been liquidity – you can build a great pool, but ensuring sufficient buyside participation is really difficult,” Ward said. “Liquidise has a unique structure around a guaranteed liquidity pool – transactions are fully funded before they open for trading, meaning company owners have complete assurance; and shareholders and investors can be confident that they’ll be able to trade fairly and efficiently from a transparent price point.”
Kester Black Founder and Managing Director Anna Ross said Liquidise had delivered liquidity for shareholders, giving them the opportunity to either sell or buy shares. “We had an excellent experience with Liquidise – the process was smooth, transparent and efficient,” Ross said. “Liquidise is an ideal solution to the liquidity problem that all private company owners face, and we’re delighted to have been an early adopter of the platform.”
Liquidise incorporates a registry platform (formerly Boulevard Global); a trading platform, and a liquidity pool. Digital asset technology allows for instant settlement and cash transfer. Companies wishing to transact on Liquidise must meet minimum valuation and profitability requirements and undergo a third-party due diligence process to both substantiate their finances and arrive at a share price valuation. An agreed parcel of shares is then purchased by the liquidity pool and its underlying investors, and offered for trade from an agreed price point with pre-qualified and approved participants.
Liquidise investor and Non-Executive Director Cathryn Lyall said the structure and process combined to deliver an unprecedented value proposition for both company owners and investors. “Unlocking the value of a good company has always been really difficult – listing is expensive and complex; and the other options like selling, changing control or transacting at a buyer’s set price are unpalatable for many reasons,” Lyall said. “Also, Employee Share Option Plans have traditionally been cumbersome because good mechanisms for employees to sell their shares don’t really exist. Liquidise changes all that, and with 95% of Australian companies privately owned, this can be a real gamechanger for company owners, and for those looking to invest in private opportunities.”
Companies looking to use Liquidise to facilitate transactions in the coming weeks include Holon Investments; Hellyer Metals Ltd, New Quantum, and LOVE TO. Holon Investments Executive Chairman Luke Behncke said, “We have been honoured to be part of the Liquidise journey since its inception and have relied on its registry functions for all critical aspects of governance, compliance and capital raising. Liquidise’s Liquidity program is another valuable innovation to support Australian business’s commercial realities and we will be looking forward to using it in the future.”
