Now Venture Capital firms go public with Portfolio Stock Exchange

Can Venture Capital Companies/Funds be listed on a stock exchange?:
Portfolio Stock Exchange is the best venue to make this possible.

In the context of a constantly evolving financial market, the listing of the first Spanish Venture Capital Company (“VCC”) (Sociedad de Capital Riesgo - SCR) on a Spanish stock exchange marks a turning point in the closed-end collective investment industry. This historic milestone represents a new era of opportunity for private equity fund managers, investors and the financial ecosystem at large.

Until March 2025, the only precedent in Spain was the admission to trading of a Venture Capital Fund (“VCF”) in 2007. This is because the high costs and complexities associated with traditional stock exchanges had made the listing of this type of vehicle unfeasible. Portfolio Stock Exchange has broken down these barriers, offering a platform adapted to the specific needs of VCC, allowing these instruments to benefit from the advantages of a stock exchange.

Advantages for management companies and listed vehicles

1. Improved transactability: Although venture capital vehicles, both in their company and fund form, are not designed for constant inflows and outflows of investors, the possibility of creating a secondary market for shareholders and participants significantly increases the attractiveness of the product. This provides a mechanism that facilitates liquidity for investors (domestic and foreign) without destabilizing the vehicle.
2. Access to collateralized funding: Depending on the risk profile and criteria of financial institutions, listed shares of a VCC may be considered eligible assets to secure loans and receive loan-to-value, with lower regulatory capital consumption than if they were not listed. This may be a determining factor in allowing leverage for investors.
3. Operational control: Portfolio Stock Exchange gives issuers the freedom to set any restrictions on the free transferability or voting rights they deem appropriate: lock-up, drag-along, tag-along, ancillary benefits (in the case of companies) and limitation on the maximum percentage of voting rights that may be exercised by a shareholder irrespective of the percentage of shares held. To facilitate the monitoring of compliance with the covenants/limitations in the fund prospectus, Portfolio SE makes available to the issuer/manager information on orders placed in the market, executed orders, a real-time list of holders, and a functionality in the technology platform that allows new investors to be obliged to adhere to the shareholders' agreement before being able to place an order in the market (in this way, any new shareholder/participant would be bound by the covenants).
4. Simplified onboarding and direct access: The onboarding process for new domestic or international investors is automated, eliminating the traditional bureaucracy of the subscription process and allowing investors to subscribe to the VCC regardless of their jurisdiction.
5. Improved distribution and eligibility: By being listed, the shares or units of the VCC are bought and sold through the Portfolio Stock Exchange like any other financial instrument, resulting in a more cost-efficient alternative to traditional distribution platforms for unlisted funds. In addition, by listing, it improves the eligibility of the shares/units, allowing UCITS, institutional investors or insurers, for example, to invest in VCC without having to dedicate unrestricted investment percentages or without being penalized in terms of regulatory capital consumption.
6. Elimination of intermediaries: Exchange-Traded Funds do not require the keeping of a record book of unitholders, nor the intervention of the transfer agent to manage redemptions, pay dividends, or manage corporate events, with Portfolio Stock Exchange as custodian and paying agent handling these functions.

Innovation and efficiency

Innovation is a fundamental pillar of Portfolio Stock Exchange. Our approach drastically reduces listing and maintenance costs compared to traditional exchanges, offering competitive fees and an integrated custody service with Euroclear France as the central securities depository. This structure not only optimizes operational efficiency, but also ensures transparent and professional management of investors' positions.

Until the appearance of Portfolio Stock Exchange, there was no option in Spain to trade this type of vehicle efficiently on the stock exchange. The costs and requirements of the traditional stock exchanges had made it prohibitive, resulting in only one Venture Capital Fund (VCF) being listed in the last 20 years before the appearance of Portfolio SE.

Costs

At Portfolio Stock Exchange we are committed to providing a value proposition tailored to each specific use case. We design predictable and stable fees over time, with no surprise charges, so that fund management companies can understand and incorporate these total costs into their financial models.

Conclusion

The listing of the first private equity company in Spain is not only a historic milestone, but a statement of intent for the future of the industry. Portfolio Stock Exchange is committed to continue leading the transformation of the market, offering tailored solutions and creating a more accessible, efficient and innovative environment for managers and investors.

If you would like to know more about our pricing, what the process is like and discuss your case in detail, please do not hesitate to get in touch.