SecondMarket Launches Pilot Program for Private Community Banks

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Platform for alternative investments expands its private company stock market.

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We believe that our successful private company model will enable regional and community banks to enhance the value of their private shares and continue to focus on long-term growth, said SecondMarket Founder and CEO, Barry Silbert.

SecondMarket, the leading marketplace for alternative investments, including private company stock, announced today that it has launched a new pilot program for private community banks. SecondMarket will work with banks around the U.S. to establish a customized secondary market for each bank’s shares, enabling shareholders to gain desired liquidity and investors to access unique investment opportunities. This program is an expansion of SecondMarket’s successful market for venture-backed private companies.

“Local banks are pillars of their communities, providing loans to homeowners, merchants and other small business owners,” said SecondMarket Founder and CEO, Barry Silbert. “We believe that our successful private company model will enable regional and community banks to enhance the value of their private shares and continue to focus on long-term growth.”

SecondMarket’s community bank program will allow banks to control all aspects of the secondary market for their stock, including buyer access, seller rules, and the frequency at which shares are sold. The program will also allow banks to more effectively respond to shareholder liquidity needs, augment their ability to raise capital, and mitigate the liability and administrative burden associated with share transfers.

Moreover, the community bank market will provide institutional and individual accredited investors with access to interesting investment opportunities. “There are some very compelling financial reasons to invest in community banks these days,” said SecondMarket Senior Vice President, Caryn Feinberg, who will lead the pilot program. “By investing in a local private bank, investors will have the opportunity to support their communities and capitalize on hyper-targeted geographic growth.”

The pilot program will initially focus on banks located in Texas, New Jersey, New York and Pennsylvania, before broadening into other states. Banks and investors can learn more about the SecondMarket community bank pilot program by clicking here.

About SecondMarket
SecondMarket is the leading marketplace for alternative investments. It has become the online destination for accessing market data, building your investor network and transacting in assets such as private venture-backed companies, private community banks, structured products, public equity and bankruptcy claims. SecondMarket centralizes and simplifies secondary market activity by connecting buyers and sellers, and providing world-class market and operations expertise. SecondMarket has over 75,000 participants including global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors. SecondMarket’s shareholders include FirstMark Capital, New Enterprise Associates (NEA), SVB Financial Group (Nasdaq: SIVB), the Li Ka-Shing Foundation, Dunearn, a subsidiary of (Singapore) Temasek Holdings, and The Social+Capital Partnership L.P. SecondMarket is a registered broker-dealer (Member FINRA, MSRB and SIPC) and is a SEC-registered Alternative Trading System for private company stock. The company was selected as a 2011 Technology Pioneer by the World Economic Forum in Davos, Switzerland. For further information, please visit http://www.SecondMarket.com.

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Mark Murphy
SecondMarket
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