North Capital Private Securities Corporation reported that 311 new securities were listed on its PPEX ATS, an alternative trading system, during the first three weeks of July. This figure represents a 42% increase from the previous month, bringing the total number of securities trading on PPEX to over 1,000.
Michael T. Weaver, CFA, Managing Director and Head of Trading at North Capital, stated, “The PPEX ATS continues to be a leading secondary marketplace for issuers of private and other exempt securities.” He added that as more companies choose to remain private for extended periods, the demand for a structured secondary market has intensified.
James P. Dowd, CFA, CEO of North Capital, noted that private market issuers are increasingly integrating secondary market strategies into their distribution plans, a need the PPEX ATS was designed to address. The growth in private offerings is supported by a March 2025 report from the staff of the Division of Economic Risk Analysis of the U.S. Securities and Exchange Commission (SEC), which shows an increase from 61,355 private offerings in 2015 to 87,716 in 2024. During the same period, the volume of capital raised through these offerings grew from $1.371 trillion to $3.223 trillion, representing a compound annual growth rate of 8.9%.
According to FINRA’s OTC Transparency data for Q1 2025, the PPEX ATS ranked fourth among alternative trading systems for the highest number of trades in over-the-counter equities, behind platforms operated by OTC Markets Group Inc. and Intercontinental Exchange Inc.
Sara Judd, Chief Operating Officer and Head of Business Development, commented, “Issuers are realizing that regulated alternative trading systems play an important role in facilitating liquidity for existing investors and can open opportunities to engage with new investors.” She further stated that expanding secondary markets also contributes to expanding primary distribution.
The planning for the PPEX ATS commenced in 2017, with its licensing in 2020, in response to the accelerating growth of private markets and a recognized challenge within them. Dowd described the historical issue as the “Hotel California problem” – the inability to easily exit private investments. He highlighted a recent shift, attributing it partly to the ease of trading in crypto markets, which has influenced investor expectations for liquidity in alternative investments. “Today’s investors can open an account in a few minutes, trade in prediction markets, and speculate in meme stocks. Why shouldn’t they be able to buy and sell private securities just as easily? It’s a reasonable question,” Dowd stated.
North Capital anticipates continued growth in its ATS business. Judd noted that secondary trading is now a frequent topic in conversations with new issuers, suggesting the beginning of a rapid evolution in the private secondary market space.
North Capital provides solutions for private and other exempt offerings and alternative investments, serving issuers, advisors, funding platforms, and other broker-dealers. Its offerings, through North Capital Investment Technology and its registered broker-dealer North Capital Private Securities Corporation (member FINRA/SIPC), include transaction technology and infrastructure for exempt securities, escrow facilitation, investor vetting (KYC/AML and accredited investor verifications), and the operation of the PPEX ATS.
