NYPPEX provides custody services for private equity assets which include safekeeping of physical documents and providing periodic account statements to qualified investors for their stock certificates in private companies and subscription agreements in private funds, such as private equity partnerships and hedge funds.

Member accounts at NYPPEX are insured up to $100 million by the Securities Investor Protection Corporation (SIPC) and through additional private insurance coverage. SIPC insures each member’s securities and cash held at NYPPEX for up to $500,000, of which, cash balances are covered up to $100,000. Private insurance provides additional protection for securities and cash up to $99.5 million per member, of which, cash balances are covered up to $900,000.

Members that can hold their restricted interests at NYPPEX include:

	Private funds for their portfolio company or fund investments
	General partners’ for their personal venture investments
	Private companies for their strategic and pension investments
	Private company founders, officers and directors for their restricted stock holdings
	Institutions such as public and private pension funds, corporations, financial institutions, insurance companies, endowments and foundations, etc.
	Private clients
	Advisors
	Brokers-dealers

Motivations to custody restricted interests at NYPPEX include:

	Safety. Member accounts are regulated by the NASD and are insured for up to $100 million by SIPC and purchased supplemental private insurance.
	Trade Execution Efficiency. Restricted interests held at NYPPEX make private trading of such interests easier. Internal verification of ownership, share class and quantities, and document preparation for settlements result in reduced investor due diligence, faster private trade executions and liquidity for sellers.
	Portfolio Monitoring. Members can monitor news and prices for their alternative asset holdings (if those features are available) by reviewing their periodic account statements.
	Financial Statement Documentation. Members can better document their financial statements by attaching the periodic account statements which list each alternative asset holding.
	Low Cost. Members pay a one time set up fee of $100 per certificate, and thereafter, only $150 annually per certificate; as compared to annual fees of 0.5% or more (often based on market value) from certain private banks and trusts (e.g. a single restricted interest having a $1,000,000 market value may cost 0.5% or $5,000 annually in custodian fees from a private bank vs. $150 annually at NYPPEX)
	Public and Private Asset Consolidated Reports. Members can also custody their public securities with private securities at NYPPEX, and save time by monitoring one comprehensive account statement.

Eligible U.S. and non U.S. private partnerships whose restricted interests may be held at NYPPEX include venture, private equity, buyout, hedge (hedge funds), mezzanine, debt, secondary private equity, distressed, energy, natural resources, currencies etc. Legal structures include limited partnerships, limited liability companies, funds of funds, trusts, offshore etc. Eligible U.S. and non U.S. private companies include those suitable for venture, private equity, buyout, or debt fund portfolios. Financial profiles range from distressed to pre-IPO.

There is no minimum or maximum quantity of restricted interests that may be held at NYPPEX. Fees are based on the number of certificates held, not the cost or market value of the restricted interests.