Entrex Issues Response to Treasury's Position on Increasing Competitiveness of US Markets
Chicago, IL – July 9, 2007 – Today, Entrex, Inc. submitted a formal position letter to Treasury Secretary Henry M. Paulson, Jr. in response to his June statements describing plans to “…bolster the U.S. markets global competitiveness.”
Entrex Founder and CEO, Stephen H. Watkins, explains his company’s position, “In short, we fear the US may be missing the boat on the global ‘market expansion’ trend. To be a modern steward of investor interests, we believe both the Treasury and the SEC should embrace a new non-public marketplace serving the 24,000,000 private companies that bring economic and employment growth to our nation—while protecting the interests of the investors which support them.”
Entrex is a neutral marketplace for institutional capital to find, research, track, manage and invest in private companies. They are not a broker-dealer themselves, nor an investment adviser; simply a platform where qualified private firms are set on a clear path to be recognized by alternative-investment capital, and vice versa.
Entrex’s letter sites a quote from the Treasury department, stating a general position on the matter of market modernization, which reads “…the right regulatory balance would combine high standards of market integrity, stability and investor protection with a strong foundation for innovation, growth, and competitiveness.”
Based on this, the aims of the two organizations appear to be aligned. Entrex goes on to explain that a formal market structure for sub-public companies is a necessary means for expanding capital formation to private firms. Further stating that the provision of controlled liquidity and funding channels to these companies benefits all facets of the economy—and is the next natural step in efforts to ensure that US markets remain globally competitive and relevant.
Much of their basis for a viable investor market space for private companies comes from the research and data supplied by their sponsored organization, the Private Company Index (PCI). This is a proprietary benchmarking tool used to measure overall performance growth and decline in the private sector. The PCI reflects a significant rise since its launch in Q3 2005, with calendar year 2006 showing that the portfolio’s performance increased by over 52%. Thus far, 2007 reflects a growth track of 60% from index inception.
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