Palico hosts two marketplaces specific to private equity:

Palico’s Primary Marketplace:

Our primary marketplace allows LPs to browse or be alerted of GP funds matching their investment strategy. The platform hosts a global array of GP funds across all PE fund strategies. Inversely, GPs can curate a digital profile for their fund where they can then receive requests from interested LPs to gain further access and information.

Secondary Marketplace:

Palico’s secondary marketplace maximizes price and proceeds to sellers by opening LP stakes to a global online community of both traditional and non-traditional buyers. Our secondary marketplace is a platform designed to give sellers of PE fund stakes greater access to liquidity. Investors looking to sell their private equity fund stake(s) can quickly and anonymously host fund stake details along with a secure virtual data room and engage with interested buyers and benefit from a digitally streamlined secondary sales process.

• Palico is a not a placement agent or a secondary adviser.
• Palico’s platform remains neutral, neither promoting one opportunity over another nor providing investment advice.
• Palico does not provide opinions on pricing for secondary transactions.
• We do not host the monetary transaction itself — transactions happen offline between buyer and seller.

Members of Palico’s platform are limited exclusively to professional LP investors and GP private equity professionals with the aim of curating a space featuring sophisticated and experienced Private Equity players.

Limited Partners (LP) :

Palico’s marketplace requires that all LP members on the platform meet the criteria of Accredited Investor as defined by the SEC. Palico is a platform designed exclusively for professional investors and, therefore, does not host any retail investors. In total, Palico has 3,100+ individual LP members across 1,400+ LP firms. The following is a full list of all LP member types you will find on the platform:

• Pension Funds
• Governments and Sovereign Wealth Funds
• Foundations and Endowments
• Fund of Funds
• Family Offices
• Registered Investment Advisers
• Gatekeepers
• Banks and Insurance Companies
• Corporate Investors
• Asset Managers
• Ultra High Net Worth Individuals (on a case by case basis)

In order to become a member of Palico’s marketplace, the first step is to fill out our sign up form, which will only take 3-5 minutes to complete. Once submitted our internal compliance team takes care of the rest:

For LPs
To verify LPs joining the platform, Palico validates applicants across four areas:

1. Firm-level verification: process to substantiate the corporate entity.
2. User verification: prove identity as well as employment for the new user.
3. Investor status verification: verify the status of the applicant firm or individual as an Accredited Investor.
4. Proof of regulatory oversight body: confirmation of the regulatory body that the company falls under (i.e., FINRA in the USA or FCA in the UK).

For GPs
Our internal compliance team reviews GP applications in the following areas for validation:

Quality Check  

1. Must prove that they are a GP Fund active in Private Equity. We do not host hedge-funds.
2. The GP fund must have, at a minimum, raised successfuly over USD 100M (subject to discretion) in a previous fund.
3. The GP manages closed-end funds / blind pool vehicles.
   
   

Compliance Check

1. Firm-level verification: process to substantiate the corporate entity.
2. User verification: prove identity as well as employment for the new user.
3. Proof of regulatory oversight body: confirmation of the regulatory body that the fund falls under (i.e., FINRA in the USA or FCA in the UK).

1. Competitive Bidding Process: Small secondary sellers benefit from a global marketplace featuring secondary buyers ranging from large secondary funds to smaller secondary specialist.
2. Secure Virtual Data Room: Our platform is designed with a fully encrypted data room and messaging module, allowing you to host sensitive information and engage in conversations securely.
3. Seller Anonymity: The seller remains anonymous when listing the fund stake for sale. The seller is only obligated to reveal themselves to the buyer when accepting bids from interested buyers.
4. No Obligation to Sell: There is no obligation to sell — the seller can close their listing at any time without any fees or penalty.
5. Streamlined Process: From information gathering to data room setup to buyer contact and price discovery, our platform provides digital tools that streamline the various stages of the sales process.
6. Comprehensive Customer Service: While our digital platform is robust, we also know that customer service is imperative. Every secondary sales transaction is assigned to a dedicated PE account services individual to assist throughout the process. Email, call, or message us – we aim to provide a premium customer experience.
   
   

What kind of fund stakes can be sold on Palico’s Secondary Marketplace?

Single LP stakes or a portfolio of LP fund stakes can be sold on Palico. Palico is also able to host co-investment opportunities on a case by case basis. Funds of any size can be hosted on the platform but Palico specializes in smaller fund stakes that are approximately 1M to 20M USD in size.

1. Quarterly Report
2. Financial. Statements.
3. Capital Account Statement.

In addition to the above, this is a non-exhaustive list of documents that may be requested from the interested buyers as well:

1. Subscription Agreement
2. Limited Partnership Agreement (LPA)
3. Private Placement Memorandum (PPM).

Palico’s fundraising marketplace is a two-sided marketplace designed to complement fundraising efforts of GP’s and to help optimize LP’s private equity investment opportunities.

GPs (Fund Managers)

What documents should I host in my virtual data room?
At a minimum, we require that a fund “Teaser” be uploaded to the GP’s virtual data room. However, in order to optimize the process, we highly recommend that the following documents also be hosted in the VDR:

1. Fund Presentation
2. Limited Partnership Agreement (LPA)
3. Private Placement Memorandum (PPM) or Due Diligence Questionnaire (DDQ)

LPs (Investors)

To browse and request access to GP data rooms on Palico, you need to be a registered LP member of the platform. As a member, you can browse all GP fundraising opportunities on the platform.

What is the process of investing in a GP fund on Palico?

Once you’ve identified a GP fund that you are interested in learning more about, you need to request access to that GPs virtual data room. At this point, it is up to the GP to approve access to their virtual data room. If access is granted, then the LP will be required to sign an NDA before having access to the files hosted in the data room. There is also an encrypted messaging module hosted in the virtual data room where both parties can ask clarifying questions or request additional information.

Palico’s platform combines technological excellence along with regulatory compliance. We continuously improve the platform to ensure the security and confidentiality of our users.

Security and Data Protection:

Palico is a cloud-based platform and complies with the industry-standard data security protocols. Our network and infrastructure use several security layers (encryption, authentication, authorization) to guarantee the confidentiality and integrity of recorded and exchanged data. All security layers are based on widely used and approved protocols in the industry and comply with ISO 27001 certification.

Confidentiality:

Palico offers a Virtual Data Room to share confidential information with selected counterparties. The Data Room’s access is granted by the seller (in the case of a secondary sale) or by the GP (in the case of fundraising) for chosen requesters.
Palico also provides an end-to-end encrypted messaging module in order to negotiate and discuss transaction details privately.

Anonymity:

Palico is designed to maintain the anonymity of the LP members on the platform:

1. Palico respects the LP’s preference to remain anonymous on the platform. The LP’s identity is only revealed in the event they have solicited authorization to view confidential material or due diligence documents from a GP’s data room.
2. In the event the LP selling a secondary fund stake the identity of the seller is kept confidential at the discretion of the LP but does have an obligation to reveal their identity once the process gets to the LOI stage of a secondary sale.
   
   

Fairness:

The marketplace is controlled and overseen by our internal compliance team. The compliance team thoroughly monitors member activity to ensure that no member is misusing the information available online.

Transparency and Standardization:

Palico is built on the premise of providing a level-playing field to all its members on the platform. It does so by giving all its members’ access to the same information presented in a standardized form for all investment or sale opportunities available on the marketplace