XPS launches unique solution for trading illiquid assets, amid rapid growth in secondary market

XPS launches unique solution for trading illiquid assets, amid rapid growth in secondary market

21 Aug 2024

• XPS Group has launched a new approach, XPS Xchange, designed to facilitate illiquid asset trade on the secondary market.
• XPS Xchange adopts a three-pillar approach, enabling trustees to search for buyers and sellers across brokers, secondary fund managers and other buyers, a departure from the traditional approach of solely using brokers.
• Trustees who implement this innovative approach can expect to potentially increase the value realised from illiquid asset transactions by up to 20% and make savings on transaction costs exceeding £500,000 on a typical £100 million trade.

London, UK – XPS Group, a leading FTSE 250 pensions and insurance consulting and administration business, has today announced the launch of XPS Xchange, an innovative service designed to transform the sale of illiquid assets.

With the secondary market for trading illiquid assets having grown from £6bn to £100bn per annum over the last 20 years*, XPS Xchange is a departure from the traditional method of solely using a broker to find the best price. Instead, XPS Xchange scans the breadth of the market and banking solutions for buyers and sellers, enabling a wider search so trustees can achieve optimum outcomes in line with their objectives on governance, value and timescales.

As a result, by accessing this wider pool of buyers and sellers, XPS Xchange can deliver better outcomes for clients wanting to trade illiquid assets, potentially increasing the value realised from a transaction by up to 20%*. Furthermore, XPS's expertise in institutional investing helps minimise third-party fees, often resulting in savings on broker fees exceeding £500,000 on a typical £100 million trade.

André Kerr, Partner at XPS Group commented: “The illiquid asset market has grown exponentially over the last twenty years, but traditional transaction methods have often left clients with limited options. XPS Xchange was developed to improve outcomes around governance, value, and timings. Our new approach provides buyers and sellers the widest possible range of options, empowering them to make informed decisions and achieve the best possible outcomes.”

Notes:

* (Source: Setter Capital Volume Report FY 2023, edition 22)

* Fee savings and realising value are for illustrative purposes