SAN FRANCISCO and NEW YORK, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Nasdaq Private Market (NPM), a leading provider of secondary liquidity solutions to private companies, employees, and investors, today announced a partnership that offers private company shareholders direct access to Wealthfront’s industry-leading suite of high-yield cash management and automated investment products. Since inception, NPM has serviced over 200,000 individual eligible employee shareholders and investors on its platform. Now, NPM clients will have seamless access to Wealthfront’s wealth management offerings directly from the NPM SecondMarket® Liquidity Platform after wealth creation events. With this partnership, private company employees can easily direct proceeds from secondary liquidity events to Wealthfront via the NPM platform and choose from a variety of products across the risk spectrum to help achieve their financial goals.
As more private company employees turn to the secondary market to sell shares of their equity, either via tender offers or individual trades, increasingly they are looking for a financial partner to help them earn more on their cash proceeds and leverage smart investing strategies to turn those proceeds into longer-term wealth. Through NPM’s Wealth Connect platform, NPM clients can benefit from Wealthfront’s high-yield Cash Account, which currently offers a 4.00% annual percentage yield (APY) on deposits from partner banks, as well as Wealthfront’s low-fee, easy-to-use automated investment products.
“NPM’s mission is to help millions of private company employees achieve their long-term financial dreams. In addition to facilitating wealth creation events on the premier NPM tender platform, we are committed to helping employees access the best available wealth advisory products and services. We are proud to partner with Wealthfront, a world-class wealth management platform. They offer technology-led, sophisticated personal finance products which help clients build wealth for the long term,” noted Tom Callahan, Chief Executive Officer of Nasdaq Private Market.
Wealthfront’s suite of wealth management products and services includes high-yield cash management, diversified ETF and bond investing, individual stock investing with no commissions, and low-cost margin loans. Wealthfront also offers a number of tax-efficient offerings that are ideal for employees who have recently gone through a liquidity event, including automated Tax-Loss Harvesting to help offset capital gains, a new Wealthfront S&P 500 Direct portfolio designed to combine the performance of the S&P 500® with added tax savings, and an Automated Bond Ladder that provides a steady yield without incurring state taxes.
“As a tech-driven financial platform built specifically to help turn savings into wealth, Wealthfront is excited to partner with Nasdaq Private Market to directly support beneficiaries of liquidity events in achieving their long-term goals,” said David Fortunato, Chief Executive Officer of Wealthfront. “We look forward to serving the growing number of employees selling shares on the secondary market who are looking for smart, intuitive cash management and investing products to manage and grow their proceeds.”
As an industry-leading provider in the secondary market for the past decade, NPM has executed more than $55 billion in transactional value across 760+ company-sponsored liquidity programs. NPM’s primary business lines include Company Solutions, SecondMarket Trading Marketplace, Transfer and Settlement, and Tape DTM Data and Analytics. Its Company Solutions business supports private companies using proprietary technology to facilitate tenders, auctions, and pre-direct listing programs. NPM’s next-generation SecondMarket electronic trading marketplace is bringing transparency and efficiency to the block trading of private shares for employees and investors with a model fully aligned with the interests of private companies. Its Transfer and Settlement technology streamlines the complex, burdensome process of post-match workflows for companies and trading counterparties. NPM’s Tape DTM product aims to deliver on the market’s need for actionable insights into trading activity and private company data for investors.
About Wealthfront
Wealthfront is a tech-driven financial platform built to help young professionals turn their savings into long-term wealth. Through software, the company delivers cash management, diversified ETF and bond investing, individual stock investing with no commissions, and low-cost margin loans to help sophisticated and new investors learn, lower costs, and grow wealth. Wealthfront is one of the highest-rated financial apps in the Apple App Store and has been named Best Automated Investment App, Best Overall Robo-Advisor, and Best Robo-Advisor in the Portfolio Construction, Portfolio Management, and Goal Planning categories by Investopedia (2024), Best Cash Management Account and Best Investing App by Bankrate (2024), and Best Robo-Advisor for Portfolio Options by NerdWallet (2024). The company currently oversees nearly $80 billion for over 1 million clients in the US. To learn more, please visit www.wealthfront.com or download the app on the App Store or Google Play.
About Nasdaq Private Market
Nasdaq Private Market provides liquidity solutions for private companies, employees, and investors throughout each stage of the pre-IPO lifecycle. In 2013, the company was founded within Nasdaq, Inc. Today, it is an independent company with strategic investments from Nasdaq, Allen & Company, Bank of America, BNP Paribas, Citi, DRW Venture Capital, Goldman Sachs, HiJoJo Partners, Morgan Stanley, UBS, and Wells Fargo.
For more information about Nasdaq Private Market, visit www.nasdaqprivatemarket.com. Explore LinkedIn and X for the latest company news.
Disclosures and Disclaimers
NPM is not: (a) a registered exchange under the Securities Exchange Act of 1934; (b) a registered investment adviser under the Investment Advisers Act of 1940; or (c) a financial or tax planner and does not offer legal or financial advice to any user of the NPM website or its services. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, and member FINRA/SIPC. Transactions in securities conducted through NPM Securities, LLC are not listed or traded on The Nasdaq Stock Market LLC, nor are the securities subject to the same listing or qualification standards applicable to securities listed or traded on The Nasdaq Stock Market LLC.
Wealthfront Disclaimer
The information contained in this communication is provided for general informational purposes only, and should not be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance.
The effectiveness of the tax-loss harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e.g., taxable or nontaxable) or holding period (e.g., short-term or long-term).
Wealthfront Advisers and its affiliates do not provide legal or tax advice and do not assume any liability for the tax consequences of any client transaction. Clients should consult with their personal tax advisors regarding the tax consequences of investing with Wealthfront Advisers and engaging in these tax strategies, based on their particular circumstances.
The S&P 500® (the “Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates (“S&P DJI”) and/or their third-party licensors and has been licensed for use by Wealthfront. S&P®, S&P 500®, SPDR®, US 500™, The 500™, are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); third party licensor trademarks in the Index, if any, are trademarks of the respective third party licensors. The S&P 500 Index and S&P 500® have been licensed for use by S&P DJI and sublicensed for certain purposes by Wealthfront. Wealthfront’s statements are not endorsed by and Wealthfront’s products are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, or their third-party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
Brokerage related products, including the Cash Account, are offered by Wealthfront Brokerage LLC, Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. The Annual Percentage Yield (“APY”) on cash deposits as of December 27, 2024, is subject to change. The APY reflects the weighted average of deposit balances at participating program banks [https://www.wealthfront.com/cash-account-participant-banks], which are not allocated equally. Funds are swept to program banks, where they earn a variable APY. No minimum balance required. Investment management and advisory services--which are not FDIC insured--are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser.
Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.
Awards disclosures: Investopedia receives cash compensation for referring potential clients to Wealthfront Advisers, LLC (“Wealthfront Advisers”) via advertisements placed on their website which could create an incentive creating a material conflict of interest. While they receive compensation for referring potential clients, the statements and rankings provided above represent independent endorsements by Investopedia, which are not directly tied to such compensation. Investopedia and Wealthfront Advisers are not associated with one another and have no formal relationship outside of this arrangement. Investopedia’s opinions are their own. Their ratings are determined by their editorial team. Investopedia is not a client of Wealthfront Advisers. Investopedia designed a system that rates robo-advisors based on nine key categories and 59 variables. Each category covers critical elements users need to thoroughly evaluate a robo-advisor. The ratings reflect data and evaluations for the 12-month period ending in February 2024. Learn more about their methodology and review process. Investopedia ranking as of March 2024.
Bankrate receives cash compensation for referring potential clients to Wealthfront Advisers, LLC (“Wealthfront Advisers”) and Wealthfront Brokerage, LLC (“Wealthfront Brokerage”) via advertisements placed on their website which could create an incentive creating a material conflict of interest. While they receive compensation for referring potential clients, the statements and rankings provided above represent independent endorsements by Bankrate, which are not directly tied to such compensation. Bankrate and Wealthfront are not associated with one another and have no formal relationship outside of this arrangement. Bankrate’s opinions are their own. Their ratings are determined by their editorial team. Bankrate is not a client of Wealthfront Advisers. Bankrate designed a methodology that evaluates app-based financial services—including robo-advisors, brokerages, and mobile-only platforms, assessing overall experience, features offered and total value proposition to the investor. Best Investing App 2023 was awarded on January 10, 2023 based on data and evaluations over the 12-month period ending in December 2022. Bankrate also designed a methodology that evaluates non-bank cash accounts, evaluating APYs, checking features, service fees, minimum deposit and balance requirements and other factors. Best Cash Management Account 2024 was awarded on December 12, 2023 covering the 2023 calendar year. Wealthfront pays an annual license fee to use Bankrate’s awards in marketing materials. Learn more about their methodology and review process.
Nerdwallet receives cash compensation for referring potential clients to Wealthfront Advisers, LLC (“Wealthfront Advisers”) via advertisements placed on their website. Nerdwallet and Wealthfront Advisers are not associated with one another and have no formal relationship outside of this arrangement. Nerdwallet’s opinions are their own. Their ratings are determined by their editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Nerdwallet ranking as of June 2024.
Media Contacts:
Elly Stolnitz, Director of Communications, Wealthfront
press@wealthfront.com
603-660-8762
Amanda Gold, Chief Marketing Officer, Nasdaq Private Market
Amanda.Gold@npm.com
917-373-6539
