Portal may be set for strong initial growth

The Nasdaq's bid to trump its arch rival, the New York Stock Exchange, is betting that private placements will continue to soar. A lot of the Sarbanes-Oxley related news has focused on the IPO market, which has soared recently in the U.S., despite assertions that Sarbox was making IPOs much harder. Still, the fact remains that the private placement market is growing even faster, Worldwide, initial public offering volume dipped 6 percent last year, while private placements volume grew roughly 60 percent. Private placement volume now exceeds IPO volume. So perhaps the Nasdaq's Portal service, billed as an electronic exchange of sorts for privately placed securities is hitting the sweet spot. There are many who think Sarbox will continue to boost private placements, despite various reform measures. Venture capitalists will also welcome a better means to a private exit. It might also appeal to private equity funds.  

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- here's an article from Red Herring