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ARTICLE · 02 FEBRUARY 2012

The New Liquidity

Goodwin Procter LLP
Explore more from Goodwin Procter LLP

Insights into private company direct secondary transactions, the factors behind them and their place in today’s private equity landscape.

United StatesFinance and Banking
James Hutchinson
James Hutchinson
Breck Hancock
Breck Hancock

Insights into private company direct secondary transactions, the factors behind them and their place in today's private equity landscape.

Companies such as Facebook, Groupon, Living Social and Zynga Game Network represent a new breed of Internet companies that differ dramatically from the shooting stars of the last Internet bubble.

These companies not only have revenue, but in some cases, are highly profitable.

Investors in these companies have responded to their unique characteristics and the current market dynamics by creating a new model for late stage equity financing. Widely known as "DST Deals"—named after Digital Sky Technologies, the Russian investment firm—these liquidity transactions have attracted widespread interest.

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