Tom Callahan, CEO of NPM: Unlocking Liquidity in Private Markets
My guest today is Tom Callahan, the CEO and Manager of the board of managers of Nasdaq Private Market (NPM), a secondary market trading venue for issuers, brokers, shareholders, and prospective investors of private company stock. In 2021, NPM was spun-off of Nasdaq to become its own, independent company receiving strategic investments from coalition of banks. In our conversation, we discuss his experiences on Wall Street during the 1990s, the impact of the JOBS Act on private markets, and the challenges private companies face regarding governance and liquidity. Tom highlights how NPM is improving data accessibility and efficiency, while also addressing the balance between fostering innovation and ensuring transparency. The conversation concludes with Tom reflecting on the future of private company secondary markets. If you like this show, please consider subscribing, leaving a review, or sharing this podcast on social media. You can also contribute by subscribing to the Boardroom Governance Newsletter at evanepstein.substack.com This podcast is sponsored by the American College of Governance Counsel.
Boardroom Governance with Evan Epstein · Tom Callahan, Evan Epstein
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Show Notes
(0:00) Intro.
(2:05) About the podcast sponsor: The American College of Governance Counsel.
(2:52) Start of interview.
(3:36) Tom's origin story.
(5:37) The start of his career with Merrill Lynch (1991-2008).
(7:00) The financial crisis and his transition to the NYSE (2009-2013).
(10:53) His time at BlackRock (2013-2022).
(15:14) Defining private markets: "VC-backed pre-IPO private companies typically worth $1b ie. unicorns." Comparing public and private markets. Impact of the JOBS Act (2012).
(18:47) About the Nasdaq Private Market (NPM). Why companies do tender offers in private companies. Managing secondary liquidity.
(26:31) Distinguishing liquidity for employees, founders, and investors (cap table cleanup). Function of IPO.
(32:40) On regulation of private markets ("private markets are under regulated"). Difference between public and private markets: information asymmetry.
(41:23) Current private market dynamics (2021-2024). "We're optimistic that 2025 will be a great year"
(45:32) On the role of AI: "it has been the story of the public markets and private markets in 2024."
(50:26) Books that have greatly influenced his life.
- How to Win Friends and Influence People, by Dale Carnegie (1936)
- Never Split the Difference, by Chris Voss (2016) "Tactical empathy"
(52:52) His mentors.
(54:47) Quote that he thinks of often or lives his life by: "Whether you think you can, or think you can't - you're right," (Henry Ford)
(57:05) Cultural differences in venture between NY and Silicon Valley.
(58:19) An unusual habit or absurd thing that he loves: he's a volunteer pilot for Dogs for Good.
(59:38) The person he most admires.
Tom Callahan is the CEO and Manager of the board of managers of Nasdaq Private Market (NPM).
You can follow Evan on social media at:
X: @evanepstein
LinkedIn: https://www.linkedin.com/in/epsteinevan/
Substack: https://evanepstein.substack.com/
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