Knight Capital Group has become the latest equities firm to team up with GreenCrest Capital Management to offer institutions access to private companies.
Under an advising and consulting agreement, Knight and GreenCrest will work together to offer access to the secondary direct market, which provides liquidity to venture capital and private equity firms, as well as to other investors in private companies.
Jersey City-based Knight will draw on GreenCrest’s expertise in private companies while offering access to the equities firm’s trading and distribution channels. The goal is to allow institutions to invest in private companies and to provide liquidity and capital-raising opportunities for private companies and their investors.
"We are excited to work with Knight to serve mutual funds, hedge funds, family offices and other sophisticated investors who are looking to take part in the secondary direct market," Boaz Rahav, general partner at GreenCrest, said in a statement. "Our unique equity research and deep relationships with companies, coupled with Knight’s institutional investor client base, will improve transparency and create new investment opportunities for our clients."
Earlier this month, GreenCrest entered into an agreement to provide research on private companies in the social media and e-commerce sectors to Nomura-owned Instinet.
