The CEO of an alternative trading platform wants to revolutionize private equity investing to counteract the stagnating IPO market.
That's why Forge Global's Kelly Rodriques partnered with Accuidity to launch the Forge Accuidity Private Market Index this spring.
The ultimate goal: to give more investors easier access to unicorns.
“This is a major financial innovation that is happening right now,” Rodriques told CNBC's “ETF Edge” this week. “There is a future … where index products and other financial innovations allow any investor to participate.”
The Forge Accuidity Private Market Index consists of 60 private companies, including SpaceX, Stripe and Epic Games, according to Forge Global's website. However, access is currently closed to private investors.
“Today, the regulations are such that you must have a minimum net worth to meet the requirements for accreditation,” said Rodriques.
This means that even with Forge's new initiative, only institutional investors and high net worth individuals will be able to buy shares. But anyone, accredited or not, can sell their shares of private companies on the platform. However, those same companies will still have the right to reject transactions on the platform.
Rodriques hopes these regulations will change as interest in private investment increases.
“We're seeing a world very soon where non-accredited investors can go into a basket of index stocks and bet on 60 to 70 names and themes, just like you do in the public market, and that will really open up the market,” he said.
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