BNP Paribas Announces Investment in Forge and Launches Industry-First Investment Product focused on Pre-IPO Securities
April 03 2019 - 09:00AM
BNP Paribas Announces Investment in Forge and Launches
Industry-First Investment Product focused on Pre-IPO Securities
BNP Paribas, a leading European provider of banking and financial
services, announces an equity investment in Forge Global, Inc.
(“Forge”), the leading marketplace for pre-IPO securities, in
addition to a strategic product collaboration. The collaboration
will involve the development and distribution of investment
products providing exposure to Pre-IPO / private innovation
companies. Angel Rodriguez-Issa, Global Head of Strategic
Investments at BNP Paribas Global Markets, joins Forge’s board as
an observer.
In response to increasing global customer demand
for investment opportunities and economic exposure to shares of
Pre-IPO / private innovation companies, BNP Paribas’ world-renowned
derivatives group has collaborated with Forge to create a
structured equity product that is the first of its kind in this
asset class. Leveraging Forge’s technology, data and global
relationships across “unicorn” firms, the product will be linked to
a diversified basket of private shares. The selection process for
the securities held in the aforementioned investment product is
based on similar criteria used by venture capitalists.
“This relationship represents a sea change not
just for global investors but for high-growth companies seeking
liquidity,” said Kelly Rodriques, CEO of Forge. “With BNP Paribas,
and through the Forge platform, we’re bringing cutting edge
financial products to market that provide investors unprecedented
access to pre-IPO securities while presenting new options for
private companies to raise money and control their financial
future.”
With over 300 unicorns in the world,
representing over $1 trillion in enterprise value, many investors –
including institutional and high net worth clients of global banks
– are looking for access to these private innovation companies.
“Institutional investment in pre-IPO companies
is a new market for BNP Paribas, which we believe will be
compelling to our clients who are looking to diversify their
portfolios and tap into private technology growth potential,” said
Nicolas Marque, Global Head of Equity Derivatives at BNP Paribas.
“As one of the first banks to engage in this type of strategic
collaboration, BNP Paribas continues to demonstrate our commitment
to providing leading-edge solutions to our institutional and
corporate clients.”
“The introduction of a structured product
solution solves a clear access need to private equity exposure,”
added Sohail Prasad, Founder and President of Forge. “The market
has demonstrated strong demand for innovation companies across all
investor types. We’re incredibly excited to partner with BNP
Paribas for the launch of a $1 billion series of investment
products and look forward to further collaboration to enable
liquidity in this asset class.”
About Forge Global, Inc.Forge
is a premier trading, settlement and custody partner for a wide
range of investors in the private markets. Established in 2014 as
Equidate Inc., the company empowers investors and shareholders by
enabling liquidity in the private markets and has completed nearly
$2 billion in transaction volume since inception. Forge was founded
by Y Combinator alumni and backed by top investors including Tim
Draper, Peter Thiel, FT Partners and Munich Re. Forge's platform
allows employees and investors in privately held innovation firms
to liquidate a portion of their shares, and provides private and
institutional investors access to top companies like Spotify, Lyft,
and 23andMe before their IPO.
About BNP ParibasBNP Paribas is
a leading bank in Europe with an international reach. It has a
presence in 72 countries, with more than 202,600 employees, of
which almost 155,000 in Europe. The Group has key positions in its
three main activities: Domestic Markets and International Financial
Services (whose retail-banking networks and financial services are
covered by Retail Banking & Services) and Corporate &
Institutional Banking, which serves two client franchises:
corporate clients and institutional investors. The Group helps all
its clients (individuals, community associations, entrepreneurs,
SMEs, corporates and institutional clients) to realize their
projects through solutions spanning financing, investment, savings
and protection insurance. In Europe, the Group has four domestic
markets (Belgium, France, Italy and Luxembourg) and BNP Paribas
Personal Finance is the European leader in consumer lending. BNP
Paribas is rolling out its integrated retail-banking model in
Mediterranean countries, in Turkey, in Eastern Europe and a large
network in the western part of the United States. In its Corporate
& Institutional Banking and International Financial Services
activities, BNP Paribas also enjoys top positions in Europe, a
strong presence in the Americas as well as a solid and fast-growing
business in Asia-Pacific.
Press contact
Media Contact for Forge:Hotwire Global
Communications Agencyforge.us@hotwireglobal.com
Media Contacts for BNP Paribas:Mylene
Benmoussa+1 212 841 2351mylene.benmoussa@us.bnpparibas.com
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