Invest Like a Billionaire 122. Creating Liquidity in Private Markets: Understanding Secondary Market
Nov 9, 2023
Brian King, CEO of LODAS Markets, shares his expertise on creating liquidity in private markets. With a rich background that includes roles at major financial exchanges, he dives into how secondary markets unlock previously illiquid assets. The conversation also touches on the evolution of private market investments post-Jobs Act and how technology is reshaping trading dynamics. King explains the benefits of secondary markets for investors looking to capitalize on discounted opportunities, emphasizing the pivotal role of real estate in this evolving landscape.
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Brian King's Market Journey
- Brian King shares his journey from starting in Jacksonville to helping create BATS Exchange competing with NASDAQ and NYSE.
- He discusses pioneering electronic market making and building BATS Europe, now largest pan-European exchange.
Private Markets Challenge Exchanges
- Private markets are growing as companies stay private longer, becoming a competitor to public exchanges.
- More investors want private market access, pushing liquidity solutions for these alternatives.
Automated Secondary Market Innovation
- Traditional secondary sales in alternatives involved brokers charging high commissions and discounts, creating major liquidity barriers.
- Lotus Markets creates an automated platform offering multiple competing bids to tighten spreads and ease liquidity.