Nyse Euronext has acquired a minority stake in ACE as it bids to enter the market for private placement of securities.
Three-year old ACE provides investment banks and other placement agents with transaction management and marketing tools for new issuances of private securities. ACE also provides institutional investors, family offices and other accredited investors with a centralised platform for identifying and reviewing private investment opportunities.
With over $1 trillion in annual offerings, the booming US market for private placements is is seen as an attractive opportunity for Nyse Euronext as it faces dwindling volumes in its core business. Nyse's chief rival, Nasdaq OMX, entered the market earlier this year through a joint venture partnership with another private operator Sharespost.
While crowdfunding firms look to tap into the sub-$1 million market for raising funds, ACE has built its platform for more established companies looking to sell at least $50 million through their offerings. The firm claims to have registered more than 25 small to medium-sized investment banks for its platform.
Terms of the transaction between Nyse and ACE were not disclosed.