User talk:Jsmit1313/SecondMarket, Inc.

SecondMarket, Inc.

Company type	Private
Industry	Finance and Marketplaces
Founded	2004 (as Restricted Stock Partners, Inc.)
Founder	Barry E. Silbert
Headquarters	New York City, USA
Area served	Worldwide
Key people	Barry E. Silbert (Founder, Chairman & CEO)
Products	Marketplace Services Financial Data
Number of employees	100+ (2009)
Website	www.SecondMarket.com

SecondMarket (formerly Restricted Stock Partners) is a marketplace for buying and selling illiquid assets, including auction‐rate securities, bankruptcy claims, limited partnership interests, private company stock, restricted securities in public companies, structured products, and whole loans. SecondMarket's participants include global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors.

Founding

SecondMarket was founded in 2004 by Barry Silbert originally to address the growing need for liquidity for restricted securities in public companies. Beginning in early 2008, SecondMarket expanded into a number of other asset classes - first auction‐rate securities, then bankruptcy claims, limited partnership interests, structured products (MBS, CDOs, ABS), whole loans, private company stock, and lastly, government IOUs.

Jsmit1313 (talk) 15:52, 7 December 2009 (UTC)

Markets Trading on SecondMarket

Restricted Securities in Public Companies

Restricted securities, SecondMarket's initial market, utilizes privately negotiated transactions to provide access to liquidity in the trillion dollar restricted securities market. A privately negotiated sale allows buyers and sellers to trade registered and unregistered securities, pursuant to certain guidelines and conditions of the Securities Act of 1933. Several types of restricted securities trade on SecondMarket:
-- Registered and Unregistered Stock
-- Affiliate and Control Stock
-- Convertible and Preferred Securities
-- Public Debt Instruments
-- Registered and Unregistered Warrents
-- Block Trades (Small- and Micro Cap)
-- Portfolio of Securities
-- Warrant Managment

Jsmit1313 (talk) 20:01, 11 January 2010 (UTC)

Auction-Rate Securities Market

As a result of the economic crisis, in February 2008, auction-rate securities (ARS) experienced widespread auction failures that left hundreds of billions of dollars “frozen” in suddenly illiquid auction-rate securities. In response, SecondMarket (then Restricted Stock Partners) opened up its marketplace to the trading of all ARS types including:
-- Auction-rate CDOs
-- Auction-rate preferred securities (ARPS)
-- Municipal auction-rate securities (MARS)
-- Student-loan auction-rate securities (SLARS)

Jsmit1313 (talk) 13:21, 8 December 2009 (UTC)

Bankruptcy Claims Market

SecondMarket entered into the bankruptcy claims market in June of 2008 by acquiring Trade Receivable Exchange, Inc. (T-REX) of Denver, at the time the largest online auction platform serving the bankruptcy trade claims market. A variety of different claim types trade over SecondMarket:
-- Administrative Claims
-- Lease and Contract Rejection Claims
-- Secured Claims
-- General Unsecured Claims
-- Scheduled and Unscheduled Claims
-- Structured Products
-- Scheduled Priority Claims

Jsmit1313 (talk) 19:27, 11 January 2010 (UTC)

Limited Partnership Interests Market

In February of 2009, SecondMarket opened its marketplace to limited partnership (LP) interests, which are ownership rights in investment entities such as private equity funds, real estate funds, hedge funds, and fund of funds. Through this market, current limited partners are able to transfer future capital commitments to other investors who are better suited to satisfy the obligations.

Jsmit1313 (talk) 19:36, 11 January 2010 (UTC)

Structured Products

In April 2009, Secondmarket opened the collateralized debt obligations (CDO) and mortgage-backed securities(MBS) markets. The variety of collateral types that can trade over SecondMarket are:
-- Residential Mortgage-Backed Securities
-- Corporate Mortgage-Backed Securities
-- Other Asset Back Securities
-- Corporate bonds (these structures are also known as Collateralized Bond Obligations or CBOs)
-- Banks loans (the structures are also known as Collateralized Loan Obligations or CLOs)
-- Credit derivatives
-- Other CDOs (these structures are also known as CDO-squared)
-- Other specialized debt types

Jsmit1313 (talk) 19:34, 11 January 2010 (UTC)

Whole Loans

Launched in April 2009, SecondMarket's whole loans market facilitates transactions in a wide variety of residential, commercial and specialty loan types. SecondMarket transacts in both performing and non-performing individual loans as well as entire loan portfolios. SecondMarket facilitates trading in a wide variety of loan types including:
-- Residential mortgages
-- Commercial loans
-- Construction loans
-- Consumer loans
-- Industrial Loans
-- Loan Portfolios

Jsmit1313 (talk) 20:11, 11 January 2010 (UTC)

Private Company Stock Market

SecondMarket's market for stock in private companies opened in April 2009 and facilitates transactions in both debt and equity securities in a wide variety of dynamic, high growth private companies. Through SecondMarket, private companies can opt-in to an organized, controlled private liquid environment that offers early investors and employee shareholders exit opportunity prior to an IPO or M&A event. Numerous high profile companies have traded over SecondMarket including Facebook, Tesla, Zynga and Twitter.

Jsmit1313 (talk) 19:54, 11 January 2010 (UTC)

Government IOUs

SecondMarket’s government warrant market facilitates transactions in registered warrants (IOUs) issued by state governments. When the state of California issued warrants to its creditors in mid-2009, SecondMarket opened up a market place to facilitate the trading of government IOUs.

Jsmit1313 (talk) 20:27, 11 January 2010 (UTC)

Investors

FirstMark Capital

SecondMarket closed a series A round from FirstMark Capital (previously named Pequot Ventures) in late 2007. Pequot was the $2 billion venture arm of hedge fund Pequot Capital Management, but in March 2008, it was spun off as a separate business and renamed. Over the past dozen years, the venture firm has opened seven funds, and it currently has $1 billion in actively managed and unallocated capital. The fund focuses on emerging media and advertising, data and analytics and infrastructure startups.

Jsmit1313 (talk) 21:28, 11 January 2010 (UTC)

SVB Financial Group

SecondMarket's acquisition of InsideVenture led SVB to become an investor in SecondMarket in October 2009. SVB Financial Group provides financial services to emerging, growth and established technology companies in the life science, venture capital/private equity, and premium wine markets.

Jsmit1313 (talk) 21:36, 11 January 2010 (UTC)

New Enterprise Association

SecondMarket's acquisition of InsideVenture also led NEA to become an investor in SecondMarket in October 2009. New Enterprise Associates (NEA) is a venture capital firm specializing in investments in venture growth equity at all points of developments, with a 60 percent focus on seed and start-up stage companies.

Jsmit1313 (talk) 21:43, 11 January 2010 (UTC)

Horizons Ventures

SecondMarket secured a series B round from Horizons, the investment arm of Li Ka-shing, in January 2010.

Jsmit1313 (talk) 21:50, 11 January 2010 (UTC)

Competitors

• Campbell Lutyens
• Cogent Partners
• GS TRuE
• NASDAQ Portal Alliance
• NYPPEX
• Probitas Partners
• Zealous ATS

Key Board Members/Advisors

Barry E. Silbert is the Founder and CEO. Barry is responsible for overseeing the strategic direction and operation of all its markets. He is a frequent speaker at conferences on the topic of trading illiquid assets and has appeared in numerous leading publications, including The Wall Street Journal, The New York Times, The Washington Post, Financial Times, USA Today, BusinessWeek and Forbes . Mr. Silbert has been featured on CNBC, CNN Money, Bloomberg News, Fox Business News, Business News Network and TheStreet.com.

In 2009, Barry was a category winner of Ernst & Young's Entrepreneur of the Year Award, a winner of Crain’s Entrepreneur of the Year Award and was included on Treasury & Risk’s list of the 100 Most Influential People in Finance. Barry was recently recognized by Fortune as “One to Watch” in the publication’s annual 40 Under 40 issue. In addition, SecondMarket was named the top start-up in the entire Northeast by AlwaysOn Media and was named one of the Top Fifty Tech Startups You Should Know by BusinessWeek.

Mr. Silbert is also the chairman of Pluris Valuation Advisors, LLC, a New York-based valuation firm specializing in illiquid assets.

Bill Seidman was a Senior Advisor to SecondMarket from 2008 until his death on May 13, 2009. In addition to his position with SecondMarket, Mr. Seidman was a chief commentator at CNBC-TV and publisher of Bank Director Magazine. Previously, he served as chairman of the Federal Deposit Insurance Corporation (FDIC) from 1985 to 1991 and was the first chairman of the Resolution Trust Corporation (RTC) during the savings and loan crisis. Mr. Seidman served as an economic advisor to Presidents Reagan and Ford and as a consultant to the World Bank, Deposit Corporation of Japan, Morgan Stanley (Asia), Ernst & Young, Nippon Credit Bank, Freddie Mac and the Capital Group.

Larry D. Lenihan, Jr. is the Founder, CEO, and Managing Director of FirstMark Capital. Prior to founding FirstMark, Mr. Lenihan founded Pequot Ventures in 1996. Mr. Lenihan is responsible for investments in the data & analytics and vertical applications & services sectors. He serves as a senior member of FirstMark Capital's Investment Committee and has been directly involved in the formation of each private equity and venture capital fund established by the firm since its inception. Prior to FirstMark, Mr. Lenihan was a Principal at Broadview Associates, L.L.C. (now part of Jefferies & Co.) one of the leading mergers and acquisitions advisory firms focused on the information technology industry. Before joining Broadview, Mr. Lenihan held several operational positions at IBM, and led the development and launch of one of the first transactional multimedia systems for the retail industry. Mr. Lenihan sits on the boards of Dovetail Insurance, Duck Creek Technologies, Duck Creek Technologies Europe, Ltd., EagleEye Analytics, Health Plan One, Restricted Stock Partners, Saba Software (NASDAQ: SABA), Superior Access Insurance Services and Swingtide. He serves as Chairman of the Duke University Pratt School of Engineering Devil Fund. Additionally, he is an adjunct professor at New York University. Mr. Lenihan holds an M.B.A. from the Wharton School of Business at the University of Pennsylvania and a B.S. from Duke University.

John McKenna has over 15 years of investment banking experience. Mr. McKenna has completed over 100 transactions involving mergers and acquisitions, debt and equity capital raising, and financial restructuring. Between 1999 and 2006, Mr. McKenna was Managing Director and Co-Head of the Eastern Region Financial Restructuring Group at Houlihan Lokey Howard & Zukin. There, Mr. McKenna represented companies including, Airgate PCS (a Sprint affiliate), Danka Business Systems, Impsat Fiber Networks, NII Holdings (Nextel), Outboard Marine, and Paging Network. Mr. McKenna represented other parties such as, Delta Airlines' unsecured creditors, Deutsche Bank in its acquisition of Air Canada, and Retirement Systems of Alabama in its acquisition of US Airways. In completing these transactions he has developed an extensive network of contacts in the hedge fund, private equity and lending communities. Mr. McKenna served on the Board of Directors of US Airways Group from 2003 to 2005, and currently serves on the Boards of Gate Gourmet Group Holding and Haights Cross Communication. He also serves on the Advisory Board of the New York Chapter of the Cystic Fibrosis Foundation, and is actively involved in various charitable organizations. Mr. McKenna graduated with honors from Claremont McKenna College with a B.A. in Government and Economics, and holds Series 7,24 and 63 licenses. Charles Almond

Charles Almond is a life long entrepreneur with a successful track record developing and running complex financial technology ventures. Most recently, Mr. Almond was the CEO and Chairman of BondDesk Group LLC and BondExchange LLC, both of which he founded. Mr. Almond has spoken at numerous industry conferences, been published in prestigious financial periodicals, and has received recognition as a leader in the financial technology sector, including twice being named to the Institutional Investors Online Top 40 List of the most influential individuals in Wall Street technology, and in 2004, as CEO of BondDesk, made the INC 500 Fastest Growing Private Companies List. In addition, BondDesk Group has made the Securities Technology Fast 5 and Top 50 Lists of technology solution providers to Wall Street, as well as The American Banker FinTech 100 List. Mr. Almond has dual Bachelors degrees in Economics and Philosophy, and an MBA with a dual concentration in Strategic Management and Marketing from the Peter F. Drucker Graduate Management Program at the Claremont Graduate School.

Sir Ka-shing Li, is a wealthy businessman from Hong Kong. He is the richest person of East Asian descent in the world and the twelfth richest man in the world with an estimated wealth of US$16.2 billion on 13 February 2009. Presently, he is the Chairman of Hutchison Whampoa Limited (HWL) and Cheung Kong Holdings; through them, he is the world's largest operator of container terminals and the world's largest health and beauty retailer. Considered one of the most powerful figures in Asia, Li was named "Asia's Most Powerful Man" by Asiaweek in 2001. Forbes Magazine and the Forbes family honored Li Ka-shing with the first ever "Malcolm S. Forbes Lifetime Achievement Award" on September 5, 2006, in Singapore.[5] In spite of his wealth, Li has cultivated a reputation for leading a no-frills lifestyle, and is known to wear simple black dress shoes and an inexpensive Seiko wristwatch, which is at odds with the house he owns in one of Hong Kong's most expensive precincts, Deep Water Bay. Li is also regarded as one of Asia's most generous philanthropists, donating over US$1 billion to date to charity and other various philanthropic causes.

Jsmit1313 (talk) 20:44, 11 January 2010 (UTC)

References

Jsmit1313 (talk) 06:31, 12 September 2009 (UTC) Jsmit1313 (talk) 01:51, 3 November 2009 (UTC)

External Links

SecondMarket, Inc.

FirstMark Capital

NEA

SVB Group

SecondMarket Providing A Platform For Frozen CDOs. Business Insider, September 3, 2009

Wall Street Betrayal Seen in $4.8 Billion Company Debt Losses. Bloomberg, August 28, 2009.

Auction-Rate Yard Sale. The Wall Street Journal, August 22, 2009.

Restless Workers in Silicon Valley Seek Ways to Cash In Early. The Wall Street Journal, August 21, 2009.

No IPO? Seek an Exit on SecondMarket. MarketWatch, July 30, 2009.

Websites give buyers chance to invest in a company before IPO. USAToday, July 21, 2009.

Investing in Startups. Business Week, July 16, 2009.

California IOUs set for trade. Financial Times, July 15, 2009.

Investors eye IOUs. San Francisco Chronicle, July 7, 2009.

Waiting for IPO: SecondMarket in the meantime. The Deal, June 30, 2009.

Market for illiquid assets. CNNMoney, May 5, 2009.

How Can Twitter And Facebook Employees Cash Out Now; SecondMarket Offers New Marketplace. The Washington Post, April 23, 2009.

With Private Trades, Venture Capital Seeks a New Way Out. The New York Times, April 23, 2009.

SecondMarket Launches Private Company Marketplace. Reuters, April 23, 2009.

Trading the untradable pays off. Fortune, April 14, 2009.

SecondMarket Launches QMS Practice. DowJones, February 25, 2009.

PE fund sales get their own market. Reuters, February 24, 2009.

Madoff investors may be able to trade their claims. Reuters, February 24, 2009.

After Reversal of Fortunes, City Takes a New Look at Wall Street. New York Times, February 22, 2009.

Out of the Rubble, a New Market. Institutional Investor, February 13, 2009.

SecondMarket Enters New Territory. Financial Times, December 11, 2008.

Seidman Returns to Toxic Asset Business. IDD Magazine, December 15, 2008.

Illiquid securities to get new market. Pensions & Investments, November 24, 2008.

Bankruptcy bucks. Denver Business Journal, June 13, 2008.

Holders of Auction-Rate Debt Have Choices, but Few Solutions. The Wall Street Journal, June 12, 2008.

New exchange offers trading of bankruptcy claims. Reuters, June 9, 2008.

Auction-Rate Securities: Out of Luck. BusinessWeek, May 27, 2008.

Secondary bids value auction debt 5-25 pct below par. Reuters, April 2, 2008.

Electronic trade to start for auction-rate market. Reuters, February 25, 2008.

Pequot Takes Minority Stake in Restricted Stock Partners. alarm:clock, September 19. 2007.

Restricted Stock Finds its Market. Investment Dealers' Digest, January 1, 2007.

Seeking Unlimited Success From Providing a Market for Restricted Stock . The Wall Street Journal, September 28, 2005.

Jsmit1313 (talk) 16:56, 12 September 2009 (UTC) Jsmit1313 (talk) 21:07, 11 January 2010 (UTC)