London Stock Exchange enters private markets

The London Stock Exchange Group (LSEG) on Tuesday announced a strategic investment and long-term partnership with digital private asset platform Floww to enter the growing market for private, unlisted companies that want to raise capital.

“The partnership enables us to support private companies with the capital they need to grow and positions us to drive innovation in trading and post trade activities … ” said LSEG.

“Together with Floww, we will build a global network of private companies and investors who will have digital and scalable solutions at their disposal including to support private primary capital raising and liquidity.”

LSEG said the move is part of its strategy “to modernise the capital markets and further build its presence in the private markets.”

Floww’s digital platform already features 7,000 company profiles and 70 venture capital firms, enabling companies to access capital while providing opportunities for investors.

LSEG said it will work with Floww to “help launch their private primary capital raising facility, while exploring liquidity and secondary market options, including through the use of new technologies.”

Murray Roos, Group Head, Capital Markets, LSEG said: “We are excited to partner with Floww and its growing network of private companies.

“We are continuing to support the digitisation of the capital markets and the next stage of this is connecting investors with the potential unicorns of tomorrow.

“Through Floww, investors can view their private portfolios in real time and identify new opportunities.

“By working together, we can support the widest range of companies through their funding lifecycle including helping them transition from private to public markets.

“Our ambition is to be the first global exchange group that is genuinely indifferent as to whether a company is public or private, and Floww is another step in this journey.

“LSEG is championing entrepreneurship and the innovation community to create a new future for the global private market.

“Floww’s network of companies and investors lays the foundation for a dynamic system that seamlessly interacts with the public markets.”

Floww CEO Martijn De Wever said: “Floww is honoured to partner with London Stock Exchange Group – the private asset market is growing rapidly to over £5 trillion but traditional infrastructure fails to keep up.

“Together with LSEG we are connecting the private market with transactions and data.

“Our platform provides global access to capital for entrepreneurs and greater opportunities for investors based on merit and accurate data.

“Trust and reliable data form the foundation for a liquid market.

“We are the only party in the market with accountant verified data and the ability for players to control who has access to what data.

“In private markets where information is sensitive, and trust is everything, controlling who can see your data is key.

“With LSEG, we are on course to building a connected network for all market players to share and manage their data, deals and opportunities and the ability to trade shares in companies at any stage.”