The stock-trading platform Public has successfully completed the acquisition of the brokerage accounts belonging to the secondary trading division of Carta, as confirmed by TechCrunch.
Carta is widely recognized for its equity management solutions and possesses a wealth of data. Despite its strong standing, its foray into the thriving secondary market brokerage service faced challenges. In January, Carta was hit by allegations from a client startup, accusing it of unauthorized use of the client’s confidential equity table information to contact shareholders about selling their stakes without the startup’s consent. This claim quickly spread, leading to significant backlash from Carta’s clientele, with many contemplating departure.
Shortly after these events, Carta disclosed its decision to exit the secondary market brokerage sector. Public emerged as a buyer, ready to take over, as previously mentioned by Axios.
Public communicated via an email to TC that the former clients of Carta Capital Markets now under its wing have the option to opt out if they choose. On the other hand, Carta has expressed its intent to not fully withdraw from the secondary market scene. It plans to persist in offering services focused on “company-driven secondary transactions, such as tender offers,” through its registered transfer agent with the SEC, as stated.
Compiled by Techarena.au.
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