The Case for Standardized Private Markets

A Vex platform whitepaper · Download as PDF

Vex starts with investor demand. Qualified investors browse a catalog of private companies, signal interest with capital commitments, and set the price through an open book build. When an anchor investor commits $1M or more to a company, Vex opens the book to all qualified participants. Bids start at $10K. The book build closes at a uniform clearing price, and Vex structures an SPV to deploy the pooled capital.

This is the opposite of the traditional fund model, where a GP picks companies, locks up capital for a decade, and charges 2/20. Vex charges a 1% annual management fee with no carried interest. Sellers pay a 5% commission. After a 12 month seasoning period, units become eligible for secondary trading on the Vex ATS. Investors should understand that units are illiquid during the seasoning period, secondary liquidity after seasoning is not assured, capital is at risk of total loss, and an SPV may partially deploy or refund capital if the book build does not reach sufficient size.

The Vex Platform

The Vex platform (“Vex”) comprises three affiliated, regulated entities operating under common control:

Vex Securities LLC is an SEC registered broker-dealer (CRD #317371), Member FINRA and SIPC, operating an SEC registered Alternative Trading System (ATS) for secondary trading of fund units.

Vex Capital (Vex Holdings PR Corp.) is an SEC exempt reporting adviser that manages each Series SPV (special purpose vehicle) and deploys capital to acquire equity in target companies.

Vex Registry LLC is an SEC registered transfer agent maintaining the authoritative ownership records for all units traded on the platform.

Who this is for

For allocators. Browse the catalog, commit through a book build, hold through seasoning, then trade on the ATS. 1% annual fee, no carried interest.

For companies and shareholders. Liquidity opportunities for your people without going public.

For investors in Vex. The infrastructure layer for private markets that still trade like it’s 1990.

Contents

  1. The Problem: Private equity has historically outperformed public markets, but accessing those returns means accepting illiquidity, stale pricing, and no portability.

  2. How Vex Works: Full lifecycle from catalog browsing through anchor commitment, open book build, deployment, seasoning, and secondary trading.

  3. Why This Model: Structural arguments for demand driven pricing, transparent book builds, and regulated infrastructure over traditional fund structures.

  4. What Comes Next: Conditional equity for governance and tokenization for distribution, both on the roadmap.

  5. Why Now: The liquidity crisis is acute, the regulatory window is open, and the technology is ready.

  6. Get Started: The infrastructure is live. How allocators and companies can participate.

This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investing in private market securities involves substantial risk, including the possible loss of principal. Past performance is not indicative of future results. Liquidity depends on counterparty availability and is not guaranteed. Vex Securities LLC, Vex Capital, and Vex Registry LLC are affiliated entities under common control. Neither Vex Securities nor its affiliates facilitate the sale of tokenized units or make recommendations related to their use. Securities offered through Vex Securities LLC, Member FINRA/SIPC.