NYPPEX Announces Zero-Fee QMS Service
NEW YORK, Sept. 2, 2021 /PRNewswire/ -- NYPPEX, one of the world's leading providers of secondary private equity market liquidity, announced a new zero-fee program1 for its leading Qualified Matching Services under IRS Regulation 1.7704 for secondary interest transfers in alternative investment partnerships. The new program applies to all transaction sizes and all partnership strategies including fund of funds, buyout, venture, real estate, natural resources, infrastructure, distressed debt, hedge and more.
NYPPEX believes this is an opportune time to introduce its zero-fee QMS program because selling limited partners are at risk of not receiving settlement approvals in 2021 from underlying general partners that have no available safe-harbor exemptions under IRS 1.7704.
NYPPEX believes this scenario may be caused by limited partners that were unable to access secondary liquidity in 2020, combining with more limited partners seeking secondary interest transfers in 2021. Together, this pent up transfer volume may cause private partnerships to reach their safe-harbor secondary transfer limits earlier in 2021.
The NYPPEX solution is to provide a QMS safe-harbor exemption to qualifying partnerships, which may enable more investors to access secondary liquidity and settle prior to 2022.
Further, NYPPEX believes the opportunity for secondary liquidity increases the probability of investors making capital commitments to new partnerships.
About NYPPEX Private Markets
NYPPEX operates a global private marketplace that provides the opportunity for qualified investors to access secondary liquidity in alternative investment funds and in private companies in a fair and ethical manner. Its clients include alternative investment funds, financial institutions, endowments, foundations, institutional investors, family offices, private clients and their respective advisors worldwide.
Since 2004, the NYPPE QMS™ has been formerly recognized by the U.S. Internal Revenue Service as a Qualified Matching Service for private partnerships though a private letter ruling under Internal Revenue Code §1.7704.
Its private securities are privately offered only to qualified investors through NYPPEX, LLC and only in jurisdictions were permitted. NYPPEX is regulated in the U.S. by the SEC and FINRA. Member FINRA, SPIC. Copyright 2021 NYPPEX Holdings, LLC. All rights reserved.
Disclosure: Private placements are illiquid, speculative and investors may lose their entire investment.
For more information, please visit www.nyppex.com or contact [email protected] or by phone at +1 (914) 305-2825.
1 The new zero-fee QMS program applies to use of the NYPPEX QMS at zero-fee provided that NYPPEX serves as agent at its standard fee for a secondary interest transfer.
SOURCE NYPPEX Private Markets
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