Private Equity Solutions

Liquidnet Completes $250 Million Private Equity Transaction

New York, February 23, 2005 -- Liquidnet Holdings, Inc., the #1 electronic marketplace for block trading, announced today that it sold an aggregate $250 million minority stake to two leading private equity firms, Summit Partners and Technology Crossover Ventures.
The entire proceeds of this transaction, less transaction expenses, will be used to redeem a portion of the equity held by Liquidnet's early investors, other shareholders and employees, allowing them to participate in the value creation that Liquidnet has achieved in the last four years. None of the funding will be used for capital or operating expenses.

There will be no change of management or control as a result of this transaction. Each of the two private equity firms will be given one seat on Liquidnet's Board of Directors. TH Lee Putnam Ventures, Liquidnet's largest investor, remains fully committed to Liquidnet and retains a seat on its Board of Directors.

Financial Technology Partners LLC and FTP Securities LLC (www.ftpartners.com) served as exclusive strategic and financial advisors to Liquidnet and its Board of Directors in this transaction.

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