In short, the PPX is a central Meeting place where issuers of Securities and investment professionals can meet. Brokers can search out offerings custom suited to the needs of their clients, and Issuers can expose their offering to a world of Reps, and a potential universe of accredited investors by proxy. It's that simple. Of course, the PPX is the first and only venue of it's kind. Sometimes the simplest ideas are the most powerful - and sometimes it takes a while to define the core need, and then service it. The PPX has been in development for over two years, and is now in it's pre-launch phase. Over the next year, PPX will go to market in a significant way. It's roll-out plan involves personal marketing to over 600,000 investment professionals and issuers. Keep in mind that the PPX is not intended for a mass audience; the marketing plan includes special offers at different stages designed to touch specific audiences at the most appropriate times.
This is Very Interesting. But Is This Legal?
Without going into a lengthly explanation by counsel in this forum, we will simply say yes, it is. The SEC has issued numerous letters and clarifications on the subject of dissemination of information regarding offerings done via the Internet. There are, of course, numerous compliance concerns, and these are seamlessly integrated into the system. But keep in mind: in using the information found in this site, you will have compliance concerns separate from PPX. For example, as an issuer, your listings must be compliant with state and Federal regulatory requirements. And, as an advisor, for example, you must have a pre-existing relationship with an accredited investor before pitching them an offer. As registered Investment Professionals, you will need to exercises your best judgment in utilizing information properly obtained at the PPX website. In using the PPX, you agree that you will follow all applicable rules and regulations, and that you will not misuse the site for illegal purposes. It is PPX's intention to offer an Industry Standard best-of-breed and practices environment, that we can all be proud of, designed with compliance as the foremost concern. Of course, should you have any questions or concerns, please consult qualified legal counsel.
The qualifications and required information are different for Advisors and Issuers. Essentially, Advisors (RRs) may search listings, Issuers may Post Listings. But what if you have an account as an Advisor, and you have a deal which you would like to do - or that you would like to sell outright as a "finder"? You would need to pace a listing; and in order to do that, you will need an account as an Issuer for that purpose. Keep in mind that you will need different email addresses for your Advisor and your Issuer Accounts, and will be generated separate logins. Membership sign up is free; placing listings will incur cost.
I am a Broker/ Advisor / Financial Planner. Why Would I Use the PPX?
Simply put, the PPX contains information available nowhere else, and is custom designed to facilitate your need of finding alternative products custom tailored to the needs of your client base. Lets say you have an accredited investor client who advises you that Next year, he is planning on retiring to Las Vegas. To that end, he would like to own a restaurant, and has $2MM to go toward this purpose. The PPX will allow you to search retail > restaurants > Nevada > las Vegas, and will present every listing. This is a simple matter, at face value. But before the PPX, how would you find this information? Cull every Las Vegas Newspaper for the last four months? Call every lawyer in Vegas? The PPX not only saves weeks of effort, but it makes possible what was previously impossible - at least from a practical standpoint.
I am a PE Fund Manager. Why Would I use the PPX?
The Secondary Salon, for one thing... (the SecSalon allows you to list asset divestitures on an anonymous basis, and take interest on a fully disclosed basis - then you allow whoever you want into your bid process). Simply put, the PPX contains information available nowhere else, and is custom designed to facilitate your need of finding (and selling) deals custom tailored to your investment objectives. Easily. Avoid inefficient, expensive services that don't deliver. The PPX enables you to search potential deals at your leisure, without being hassled by intermediaries and placement agents who throw deals at you constantly, without regard for what you are truly interested in. It will also allow you to search without disclosing your parameters to anyone, in confidence, on your own time, and make direct confidential contact with issuers at your convenience. You can even search by Mobile (the site and tools work great on cell phones).
I am a Issuer / Company Doing A Raise. Why Would I use The PPX?
Lets face it - you need cash, but are limited in where you can turn. Even the small boutiques may find your deal to small to bother with. And those gray-area "consultants" who charge an arm and a leg have limited contacts, and take ages to perform - not to mention being dangerous to your health. But you know there are investors out there who would have an interest. How do you get to them? The PPX will expose your listing to thousands of investment professionals representing millions of accredited investors. These investment pros are motivated to sell - it's how they make a living. They are actively searching on behalf of their clients right now, for projects suited to their investment objectives. Proprietary tools like PPX's "Network Builder Tool" identify members with clients who have funds ready to go for your specific type of deal - right now. Make confidential contact, and see where it leads. No matter how you figure it, a listing increases your potential of getting funded by orders of magnitude.
I Need A Distribution Network to Sell My Product. What Can The Private Placement Exchange Do For Me?
You are faced with a difficult situation. Maybe you have a tremendous track record, and numerous similar deals that have been performing extraordinarily. But your firm's current qualified client base is so happy that they've maximized their commitments in your proprietary products. And you have more product to go - but your client base is currently tapped out. You've been trying to add organically to your client base, but it takes time - and you need to act now or the opportunity will be lost. Do you merge with another brokerage firm, to expand your distribution network? Not only does this take time, but it costs gobs of money, and is fraught with risk. What if the added reps don't want to show your product to their clients? What if they quit? The PPX is the simple answer. The PPX will expose your listing to thousands of investment professionals representing millions of accredited investors. These investment pros are motivated to sell - it's how they make a living. Right now, they are actively searching the PPX on behalf of clients for products suited to investment objectives. You can use PPX's "Network Builder Tool" identify Member Firms with clients having funds ready to go for your specific kind of product, right now. Sign them up as Placement Agents ! With Firm approval, those reps and firms can become part of your motivated sales team. Any way you figure it, a listing can help you expand your network by orders of magnitude. And best of all, you can tap those relationships again and again.
Why Can't The General Public Use The PPX? Sorry, but the PPX is not designed for retail use. Please contact your registered financial professional, and make sure he/she is signed up. Membership is free, and will add measurable value to your search.
Aren't All the Good Issues Oversubscribed? In Other Words, Aren't The Listings Here Just The bottom-of-the-barrel?
No (surprisingly). It's like this - sure, you are not going to find the multi-billion dollar issues that the major wire-houses offer. What you will find, however, are issues done by the other 80% of firms that constitute this country's true capital formation engine. Microsoft did not start out with multi-billion dollar raises. Neither do most companies, that eventually attract the attention of the major warehouses. Think of it this way - represented within this site are listings that the majors simply find to trifling to bother with. These can be deals in the two million to hundred million range, from inexperienced managers to highly seasoned pros with well documented successful transactional histories. Bottom of the barrel? Hardly. *Food For Thought - one of our very first listings was for a private buyout of majority stake in a internationally known, household name restaurant franchise with several thousand locations in the US alone. Not the biggest deal in the world, but certainly not small potatoes...
Why Hasn't This Been Done Before?
As far as we can tell, smaller firms have simply never had the interest in spending the resources necessary to complete this sort of project. And other web information providers have all been sold on the idea of "cut out the middleman". It is interesting to note that in the late '90's, there were several online ATS (Alternative Trading Systems) that were brilliantly conceived, but designed to cut out the middleman (the equity traders). Most widely known was, perhaps, OptiMark. OptiMark, though arguably brilliant - as a trader you could input incredibly complex trading parameters, and walk away - it would then trade on your behalf... The problem was not that it didn't work, but perhaps that it worked too well - and if it were to have become popularly used, there might have been staggering layoffs of equity traders, as one could now do the work of twelve. Needless to say, Equity Traders could hear the bells tolling, and no trader in his right mind would use it. It died on the vine. What ATS did become popular, however, were designed to assist the traders, rather than remove them from the process. This is the spirit in which PPX has been created - to assist professionals, and bring this market segment into the modern age - efficiently, inexpensively, and pursuant to the current regulatory environment.
Do You List Hedge Funds?
No. There are several companies offering access to hedge funds. Try www.Hedgeco.net. We have no affiliation with them, but we are fans of their website; they do what they do exceptionally well.
Okay, Who is The PPX Partnered With?
The PPX is proud of it's independence. We maintain no affiliations with Broker Dealers, investment Banks, or Issuers that could be construed as conflicts of interest. We are a neutral third party data provider, and do not maintain any relationships that would compromise this neutrality. Certain employees, advisors and or directors of the PPX may have relationships with firms - however, we require them (and the associated firm) to execute an agreement specifying that they may not list nor use the PPX. Further, the PPX does not take part in any deal listed in the website. We charge a nominal flat fee to the issuer for listing, but that is it.
Why Should I sign Up; the PPX probably has only a handful of listings.
Getting a company like the PPX off the ground is more complicated than it looks. Beyond the regulatory hurdles, there is the very real issue of liquidity - in terms of how many listings there are at any given time. Our research shows that there will be vastly more than a "handful" of listings (potentially several thousand) at cruising speed. But these things take time, and as time goes on, deals get done and listings expire. Our go-live roll-out is complex and will take over a year to complete. If you are one of the very first reps invited to sign up, there may well be fewer than 100 listings. However, we have special offers designed for specific stages of roll-out. For example - right now, in "pre-launch" stage, reps who sign up will receive a free, lifetime membership. This offer is limited and will not last. Once the free memberships are gone, they will not be offered again. Subscribers afterwords will pay a monthly fee for access. So the short answer is, sign up now to lock in your free lifetime membership. Signing up takes only two minutes, and it's free for life. But - keep in mind, you are not the first to sign up, and the number of free memberships is dwindling fast. Act NOW, or lose the opportunity forever. <Sign up Now>
Q. I Would Like To Raise Funds For My Company. Will You Help Me Do The Offer?
No. PPX is a web based listing service, nothing more. We are not an Investment Bank, Broker Dealer, nor are we Legal Counsel, nor do we offer any legal or financial advice. Raising funds is a complicated business, and it is best left to the professionals. Your first step should be to educate yourself at the SEC's website, then consult qualified legal counsel. There are also numerous service providers who assist companies such as yours in creating offering documents for a fee, no matter how small or large the project. Once you have taken the steps necessary to create a legitimate offering, then the PPX may be of significant assistance in your search for an appropriate partner. You can, of course, just go with a business plan, in the hopes that any firms you attract may become interested enough to assist you more actively - but please note that though having a business plan is a necessary start, your project will not be taken as seriously as it would if you have fully developed offering documents. It is relatively rare that projects get funded based on a business plan alone. Eventually, PPX will offer a library of service providers, helpful resources, etc. The library will be available to issuers who are logged in to the site. In the meantime, please visit the SEC's Guide to "How To Raise Capital And Comply With The Federal Securities Laws" at:
