NYPPEX has amassed a significant pool of private market liquidity, currently estimated at over $10 billion through its 146 institutional members (As of September 1, 2008).

Secondary unregistered interests of private partnerships include:

	Buyout funds
	Private equity funds
	Venture funds
	Hedge funds
	Real estate funds
	Natural resources funds
	Distressed debt funds
	Limited partner interests
	General partner interests

Prospective selling parties include:

	Institutions
	Private funds introducing selling or delinquent limited partners
	Advisors and brokers introducing clients
	Private clients worldwide

Motivations to sell include:

	Corporations with new portfolios or strategies, typically as a result of mergers
	Institutions seeking to rebalance alternative asset portfolios
	Private funds seeking to obtain outstanding capital calls and/or replace weak limited partners
	Limited partners seeking exit events
	General partners seeking to diversify personal net worth
	Family offices seeking liquidity
	Pension funds seeking to create portfolio management efficiencies by selling smaller holdings
	Private funds with limited partner disputes, that seek to arrange liquidity alternatives for such limited partners

Motivations to buy include:

	The ability to invest in difficult to access venture and buyout funds or add outperforming funds
	The opportunity to add holdings in private funds entering their cash distribution phase
	The ability to acquire secondary interests in private funds at attractive discounts to net asset value
	Avoid paying fund management fees in the early years of operation
	The opportunity to generate superior returns
	The ability to immediately increase portfolio weightings in private funds

IRS Private Letter Ruling to NYPPEX provides significant comfort to general partners and their legal counsel to quickly approve private transfers of interests if done through NYPPEX (Also, private funds can permit annual transfers up to 10% of capital committed through the NYPPEX QMS vs. the standard 2% under IRS 1.7704).

Eligible U.S. and non U.S. private funds whose restricted interests may privately trade 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.

Transactions are categorized as:

	Portfolio Divestitures – Interests in multiple private funds with gross offering proceeds of i) less than $25 million or ii) $25 million or more (See Portfolio Divestitures).
	Block Trades – A single interest in a private fund with gross offering proceeds of $5,000,000 or more.
	Odd-Lots – A single interest in a private fund with gross offering proceeds of less than $5,000,000.