New data illustrates a 500% growth in employee equity awards by high-growth private companies in the past decade.
The Capdesk and Fidelity alliance creates Europe’s first ‘seed to post-IPO’ equity solution, to support the transition of employee share schemes from unlisted to listed company status.
London, March 17th 2022 – Capdesk, a leading equity management platform, today announced an alliance with Fidelity1, one of the world’s foremost investment management services. It means that, in an industry-first, growing European companies will be able to efficiently transition their employee share plans from private to public markets.
Analysis of over 360 companies that registered equity awards with Capdesk, including 17 of Europe’s 70 new unicorns, shows that between 2011 and 2021, company equity awards grew by 500%. In 2011, each company granted an average of 15 awards, soaring to an average of 98 in 2021, 85% of which were issued as options.
In line with this growing trend of pre-IPO employee equity, Capdesk and Fidelity have built Europe’s first fully integrated ‘seed to post-IPO’ equity solution for equity plans – a traditionally underserved space in the region.
Through this alliance, fast-growing companies can move their share plans effortlessly from Capdesk’s equity management platform to Fidelity’s public market services, ensuring employee ownership remains a powerful tool as they transition.
The alliance will significantly simplify the IPO process for businesses – considerably reducing the dedicated time required by pre-IPO companies’ finance teams and providing them access to Fidelity’s advisors before listing. This guidance will help companies to structure employee wealth management in tax-efficient ways, and to optimise employee pay-outs, easing the transition from a privately owned business to a listed entity. As well as equity plan management, Fidelity also provides companies with wider workplace solutions, including pensions, healthcare and financial wellness.
Capdesk, which enables privately owned companies to manage their equity digitally via a single platform, has served 500+ customers in the private market in Europe over the last six years. The alliance with Fidelity enhances Capdesk’s ability to serve clients at every stage of growth – from seed startups through to companies on the brink of listing.
1 Fidelity refers to one or both of Fidelity Stock Plan Services and Fidelity International. Fidelity International and Fidelity Stock Plan Services, LLC, are separate companies that operate in different jurisdictions through their subsidiaries and affiliates. All trademarks are the property of their respective owners.