Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

Unlocking liquidity in secondary markets for all investors with Brian King

Name: Unlocking liquidity in secondary markets for all investors with Brian King
Uploaded: 2023-11-09T22:10:20+00:00
Duration: 35 s
Channel: Bob Fraser
Description: In this interview segment, Brian King explains how traditional secondary market transactions for private assets rely on brokers who source the…

9 Nov 2023 · 1 min

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In this interview segment, Brian King explains how traditional secondary market transactions for private assets rely on brokers who source the counterparty. He notes that this broker‑mediated process typically forces sellers to accept steep discounts—averaging around 50%—and then pay an additional 10% commission for the broker’s services. The combined effect dramatically reduces the realized value for investors needing to exit their positions. King argues that by unlocking liquidity in these secondary markets, the process could become more efficient and accessible, allowing a broader range of investors to trade without such severe value erosion.

Chapters

You've been able to transact in a secondary for years and years. The problem was, is that typically that process was you call a broker, that broker goes and tries to source the other side of the trade. And most of the time you're going to get a dramatic discount, 50% average. And then on top of that, typically is going to charge a 10% commission for finding the other side of that trade for you. So you're really going to have a massive depreciation in value if you need to get out. If we can help unlock that liquidity, then it it should be able to be open to many more investors.