Private equity firm KKR & Co LP plans to allow investors to sell parts of their stake in takeover funds through a new private market run by Nasdaq OMX Group Inc , the Wall Street Journal reported on Thursday, citing people familiar with the matter. In what could be a first in the United States, smaller investors will be able to pick up pieces of these exclusive vehicles for as little as tens of thousands of dollars, the Journal report said.Private equity firms usually purchase companies by raising debt from major hedge funds and wealthy individuals. The new structure will allow existing investors to exit their investments earlier than usual and help the firms reach a wider investor base.KKR is likely to file for regulatory approval allowing trading of fractional stakes of its funds as soon as this month, according to one of the sources quoted in the report. (r.reuters.com/raq78v)The report added that other private equity firms are also in talks to sign up for the Nasdaq market and could join before it officially opens.
The NASDAQ OMX Group, Inc. (NASDAQ OMX) is a holding company. Shares of NDAQ fell by 0.93% or $-0.34/share to $36.27. In the past year, the shares have traded as low as $28.66 and as high as $41.25. On average, 1918970 shares of NDAQ exchange hands on a given day and today's volume is recorded at 2240533.
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