The CEO of an alternative trading platform wants to revolutionize private equity investing to alleviate a stagnant IPO market.
That’s why Kelly Rodriques of Forge Global teamed up with Accuidity to launch the Forge Accuidity Private Market Index this spring.
The ultimate goal: give more investors easier access to unicorns.
“This is a major financial innovation that’s happening right now,” Rodriques told CNBC’s “ETF Edge” this week. “There is a future… where index products and other financial innovations allow every investor to participate.”
The Forge Accuidity Private Market Index consists of 60 private companies, including SpaceX, Stripe and Epic Games, according to Forge Global’s website. But access is currently still blocked for normal investors.
“Nowadays the regulations are such that you have to have a minimum net worth to meet the threshold for accreditation,” Rodriques said.
This means that despite Forge’s new initiative, only institutional investors and high net worth individuals can buy shares. But anyone, accredited or not, can sell their shares in private companies on the platform. However, the same companies still have the right to refuse transactions on the platform.
Rodriques hopes these regulations will change as interest in private investment increases.
“We’re seeing a world very soon where non-accredited investors can get into a basket of index stocks and make a bet on 60 to 70 names and themes, just like you do in the public market, and that will really open it up.” he said.
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2024-06-08 15:00:01
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