North Capital (North Capital Private Securities Corporation)
B2B private markets infrastructure provider—NOT a direct investment platform. Powers crowdfunding platforms (Wefunder, StartEngine, Republic), alternative investment platforms, and private issuers with broker-dealer services, transaction technology (TransactAPI), escrow/custody, and secondary trading (PPEX ATS). Individual investors do not interact with North Capital directly.
Platform Overview
B2B infrastructure providing the regulatory, technological, and operational backbone for private securities offerings and secondary trading. Operates through three affiliated entities: (1) North Capital Private Securities Corporation (NCPS)—SEC-registered broker-dealer (FINRA/SIPC member, CRD# 154559) providing agency brokerage, managing broker-dealer services, escrow facilitation under SEC Rule 15c2-4, investor onboarding (KYC/AML/accreditation verification), compliance supervision, and clearing/custody for exempt securities; (2) North Capital Investment Technology (NCIT)—provides TransactAPI (RESTful API for private market offerings), TransactCloud (SaaS platform including Marketplace-as-a-Service, Direct Invest Button, Direct Accreditation Button), and Opera IP (white-label investment platform); (3) North Capital Inc.—SEC-registered investment advisor (RIA) offering fee-based non-discretionary and discretionary advisory services for alternative investments. Additionally operates PPEX ATS (Public Private Execution Network)—SEC-registered Alternative Trading System for secondary trading of private/exempt securities including digital asset securities. Platform clients include crowdfunding portals (Wefunder, StartEngine, Republic), alternative investment platforms (Otis/Public for fractional collectibles), real estate sponsors, fund managers, and other broker-dealers. Company-reported metrics (as of mid-2025): 3,502 deals facilitated, 502K primary transactions, $5.6B transaction volume, 220K secondary trades, 918 PPEX-approved assets. PPEX ATS ranked 4th highest ATS by trade count in FINRA's OTC equity transparency data for Q1 2025.
The firm operates through three entities: NCPS (broker-dealer, FINRA/SIPC), NCIT (technology), and North Capital Inc. (RIA). Individual investors do not interact with North Capital directly—rather, the firm provides the regulatory, technological, and operational backbone that powers crowdfunding platforms, alternative investment marketplaces, real estate sponsors, fund managers, and other broker-dealers. Core service lines include: managing broker-dealer services for issuers/sponsors, TransactAPI/TransactCloud technology for investment processing and platform operations, escrow facilitation under SEC Rule 15c2-4, investor vetting (KYC/AML/accreditation), and secondary trading through the PPEX ATS. The firm was founded by James P. Dowd, CFA, who previously served as Senior Managing Director and Head of Hedge Fund Advisory and Fund of Funds at Bear Stearns, bringing over 35 years of institutional finance experience. North Capital has been active in blockchain/tokenized securities development since 2017 and obtained FINRA/SEC approval for the PPEX ATS in April 2020. The advisory arm (RIA) offers fee-only, fiduciary advisory services covering private markets including real estate, hedge funds, private equity, private debt, venture, crypto, and frontier alternatives.
Platform Type
B2B Infrastructure Provider (broker-dealer, technology, escrow, ATS)—NOT direct-to-consumer
Regulatory Status
NCPS: SEC-registered broker-dealer, FINRA/SIPC member (CRD# 154559, SEC# 8-68648), registered in all 50 states. North Capital Inc.: SEC-registered Investment Advisor. SOC 2 examined (SOC 3 report publicly available).
Primary Customers
Crowdfunding platforms (Wefunder, StartEngine, Republic), alternative investment platforms (Otis/Public, Masterworks), real estate sponsors, fund managers, private issuers, other broker-dealers
Technology Products
TransactAPI (RESTful API for private market offerings), TransactCloud (SaaS platform), Opera IP (white-label platform), Opera IQ (investor qualification), Direct Invest Button, Direct Accreditation Button
Secondary Trading
PPEX ATS—SEC-registered Alternative Trading System for exempt securities including digital asset securities. 918 approved assets, 220K+ trades. 4th highest ATS by trade count in FINRA OTC equity data (Q1 2025).
Company-Reported Scale (mid-2025)
3,502 deals facilitated, 502K primary transactions, $5.6B transaction volume, 220K secondary trades
Headquarters
623 E. Fort Union Blvd, Suite 101, Salt Lake City, UT 84047. Branch office: Sea Island, GA. Approximately 38 registered persons (per 2024 FINRA AWC).
Founder/CEO
James P. Dowd, CFA—former Senior Managing Director, Head of Hedge Fund Advisory & Fund of Funds, Bear Stearns. Georgetown University (BSFS, International Economics). 35+ years in global financial markets.
Fee Structure
Not publicly disclosed. Managing broker-dealer services reportedly start $10K-$50K depending on scope. Technology and escrow pricing custom-quoted. Advisory services (RIA) fee-only, fiduciary, per written advisory agreement.
Offering Exemptions Supported
Regulation D (506(b), 506(c)), Regulation A+, Regulation CF, Regulation S—covering full spectrum of exempt offering types
🔄Infrastructure Provider Analysis
- North Capital's vertically integrated model (BD + technology + escrow + ATS) creates switching costs for platform clients—once a platform builds on TransactAPI, migrating to a competitor involves significant re-engineering. This benefits North Capital's retention but creates concentration risk for dependent platforms.
- The managing broker-dealer model democratizes market access (firms can launch in weeks vs. building own BD over 12+ months at $100K+ cost) but concentrates regulatory risk—if North Capital faces regulatory action, all platforms operating under its umbrella may be affected.
- PPEX ATS positioning is strategic: as private markets grow (SEC data shows offerings increased from 61,355 in 2015 to 87,716 in 2024), demand for secondary liquidity infrastructure should increase. North Capital's early mover advantage in regulated private securities ATS trading is a meaningful competitive differentiator.
- Advisory services (RIA arm) create potential cross-selling opportunities but also potential conflicts of interest—the same organization providing broker-dealer infrastructure and investment advisory services must maintain appropriate information barriers and conflict management.
Key Gaps & Non-Disclosures
- No public disclosure of total platform client count, revenue, or financial metrics. Difficult to assess financial stability and growth trajectory without this data.
- PPEX ATS matched 220K+ trades for $12M+ total value (as of late 2022 per PPEX website)—this implies an average trade size under $60, suggesting many transactions may involve fractional/micro shares. More recent dollar volume data not publicly available.
- The relationship and potential conflicts between North Capital's three entities (NCPS broker-dealer, NCIT technology, North Capital Inc. RIA) are referenced in disclosure documents but specifics are behind document requests rather than plainly stated on the website.
- No public customer testimonials or case studies beyond the Otis/Public case study, making it difficult to independently assess client satisfaction and platform reliability.
Investment Structures
North Capital does not offer investments directly to individual investors. It provides the broker-dealer license, technology stack, escrow services, and secondary trading infrastructure that other platforms and issuers use to conduct their own offerings. Individual investors encounter North Capital's services indirectly when investing through platforms like Wefunder, StartEngine, Republic, Otis (Public), or other entities using North Capital's infrastructure.
- Managing Broker-Dealer Services: North Capital serves as the registered broker-dealer of record for platforms and issuers, handling regulatory filings, compliance supervision, investor suitability review, and subscription processing.
- TransactAPI/TransactCloud: Technology infrastructure enabling platforms to process investments, verify investors (KYC/AML/accreditation), manage documents, process payments (ACH, wire, credit card, check), and maintain records.
- Escrow Facilitation: Under SEC Rule 15c2-4, North Capital holds investor funds in escrow during capital raises until offering contingencies are met—providing investor protection during the fundraising process.
- PPEX ATS: SEC-registered Alternative Trading System enabling secondary trading of private/exempt securities. Platforms can integrate PPEX through API to offer their investors a liquidity pathway for previously illiquid holdings.
- Advisory Services: Through North Capital Inc. (RIA), offers fee-only advisory for investors seeking professional guidance on private market investments—separate from and independent of the broker-dealer operations.
Risk Structure
Regulatory Registration
NCPS is SEC-registered broker-dealer, FINRA/SIPC member (CRD# 154559), registered in all 50 states. North Capital Inc. is SEC-registered RIA. PPEX ATS has SEC Form ATS acceptance and FINRA membership approval (completed April 2020). Full regulatory coverage for stated operations.
FINRA Disciplinary History
One disclosed event: August 2024 AWC (Letter of Acceptance, Waiver, and Consent) for violations during April 2020–May 2021. Violations: (1) Late filing of offering documents for 92 private placements (average 163 days late) under FINRA Rule 5123; (2) Retail communications that lacked required risk disclosures and improperly implied FINRA endorsement under FINRA Rule 2210. Sanctions: Censure and $40,000 fine. North Capital neither admitted nor denied the findings.
SOC 2 / SOC 3 Compliance
North Capital maintains SOC 2 examination with publicly downloadable SOC 3 report, indicating independent examination of security controls aligned with AICPA Trust Services Criteria. Positive indicator for data security posture.
SIPC Membership
NCPS is a SIPC member, providing limited protection for securities and cash held in brokerage accounts. Standard for registered broker-dealers. Note: SIPC coverage protects against broker-dealer failure, not investment losses.
Operational Scale
Approximately 38 registered persons and six branch offices (per 2024 AWC). Relatively lean headcount for a firm processing 502K+ primary transactions and supporting multiple high-volume platform clients. The 2020-2021 filing delays may have been partially attributable to growth outpacing operational capacity.
Concentration Risk for Dependent Platforms
Risk Summary
Platforms operating under North Capital's managing broker-dealer umbrella depend on NCPS's regulatory standing. Any significant regulatory action against North Capital could disrupt operations for all dependent platforms simultaneously.
Why It Matters
If a platform uses North Capital as its broker-dealer of record, that platform cannot conduct securities transactions if North Capital's registration is suspended or revoked. The 2024 AWC demonstrates that regulatory scrutiny exists, even if the current violations were procedural rather than fraud-related.
Mitigation / Verification
Platforms should maintain contingency plans including relationships with alternative broker-dealers. Investors on platforms using North Capital can verify the firm's current regulatory standing via FINRA BrokerCheck (CRD# 154559) and monitor for new disclosed events.
PPEX ATS Liquidity Limitations
Risk Summary
While PPEX ranks 4th among ATSs by trade count, actual dollar volume has historically been modest ($12M+ cumulative as of late 2022). The implied average trade size (~$55) suggests most activity involves fractionalized shares or micro-retail positions typical of Reg A+/Reg CF platforms, not institutional blocks. Many listed securities may have thin or no active trading, and there is no guarantee of matching buyers with sellers.
Why It Matters
Investors on platforms that tout PPEX secondary trading as a liquidity feature should understand that listing on an ATS does not guarantee the ability to sell at a fair price or at all. Private securities remain fundamentally illiquid even when listed on a secondary venue.
Mitigation / Verification
Before investing on platforms offering PPEX secondary trading, check PPEX.com for the specific security's trading history and current order book activity. Do not invest in private securities assuming liquidity will be available.
Fee Opacity Across Service Lines
Risk Summary
North Capital does not publicly disclose fee schedules for any of its B2B services. Platform clients and issuers must engage in direct discussions to obtain pricing.
Why It Matters
Lack of transparent pricing makes it difficult for platforms and issuers to benchmark costs against competitors, potentially resulting in higher infrastructure costs that are ultimately passed to end investors through platform fees.
Mitigation / Verification
Platforms considering North Capital should request detailed fee schedules and compare against alternatives (Dalmore Group, DealMaker Securities, Rialto Markets) before committing. End investors can ask their platform what infrastructure costs are embedded in offering fees.
⚠️Walk-Away Signals
- If North Capital's FINRA registration were to be suspended or revoked—this would immediately affect all platforms and issuers operating under its broker-dealer umbrella
- If additional FINRA or SEC enforcement actions reveal patterns beyond procedural violations (e.g., fraud, mishandling of investor funds, or escrow irregularities)
- If a platform is exclusively dependent on North Capital with no disclosed contingency plan for broker-dealer services
Regulatory & Legal Posture
Security Status
SEC-Registered Broker-Dealer & Investment Advisor (B2B Infrastructure)
North Capital Private Securities Corporation is an SEC-registered broker-dealer (FINRA/SIPC member, CRD# 154559, SEC# 8-68648), registered in all 50 states. North Capital Inc. is an SEC-registered Investment Advisor operating under fiduciary standard. PPEX ATS has SEC Form ATS acceptance and FINRA membership approval (completed April 2020). The firm does not directly offer securities to end investors—it provides the regulatory infrastructure enabling other platforms and issuers to do so.
Disclosure Quality
One disclosed regulatory event: August 2024 FINRA AWC for late filing of 92 private offering documents (average 163 days late) and retail communications lacking risk disclosures / improperly implying FINRA endorsement during April 2020–May 2021. Sanctions: censure and $40,000 fine. Violations were procedural/administrative—no allegations of fraud, mishandling of investor funds, or investor harm. SOC 2 examination completed with SOC 3 report publicly available. Form CRS and disclosure documents accessible via FINRA BrokerCheck and northcapital.com.
Custody Model
Self-Clearing Broker-Dealer with Escrow Facilitation under SEC Rule 15c2-4
NCPS is a self-clearing, custodial broker-dealer that facilitates escrow for offerings under Reg D, Reg A+, Reg S, and Reg CF. Investor funds are held in escrow until offering contingencies are satisfied. The firm also operates the PPEX ATS for secondary trading of exempt securities. North Capital Inc. (RIA) operates independently as a fee-only fiduciary advisor, with any commissions from affiliated broker-dealer waived or rebated to advisory clients.
Tax Treatment
Reporting
Not Directly Applicable (B2B Infrastructure Provider)
North Capital does not issue tax documents to end investors for platform-processed investments. Tax reporting is the responsibility of the platform or issuer using North Capital's infrastructure. North Capital Inc. (RIA) advisory clients receive tax-relevant documentation per their advisory agreement.
Income Character
Varies by Underlying Offering Structure
Tax treatment for investments processed through North Capital's infrastructure depends on the specific offering structure, security type, and exemption used (Reg D, Reg A+, Reg CF, Reg S). Platforms and issuers provide investors with appropriate tax forms (1099s, K-1s, etc.).
PPEX ATS secondary transactions may generate capital gains or losses depending on investor basis and sale price. Escrow releases during capital raises are not taxable events—tax implications arise from the underlying investment. This is not tax advice.
Investor Fit
crowdfunding-platform-operator
Crowdfunding platforms and funding portals seeking turnkey broker-dealer, technology, and escrow infrastructure to launch or scale operations. North Capital's vertically integrated stack (BD + TransactAPI + escrow + PPEX ATS) reduces vendor complexity for platforms processing Reg CF, Reg A+, or Reg D offerings.
real-estate-sponsor-or-fund-manager
Real estate sponsors and fund managers raising capital through Reg D private placements benefit from North Capital's managing broker-dealer services for compliance coverage, investor onboarding (KYC/AML/accreditation), and optional escrow facilitation—launching in weeks rather than building their own BD.
alternative-investment-platform
Alternative investment platforms (collectibles, tokenized assets, private credit) requiring API-driven transaction processing via TransactAPI and optional PPEX ATS integration for secondary trading of fractionalized or exempt securities.
individual-investor-direct
Individual investors cannot invest through North Capital directly—it is B2B infrastructure. Use end-user platforms (Wefunder, StartEngine, Republic, etc.) instead. The exception is North Capital Inc. (RIA), which offers fee-only advisory services for private market allocation.
liquidity-dependent-investor
PPEX ATS provides a venue for secondary trading but does not guarantee active markets or fair pricing for any specific security. Investors seeking guaranteed liquidity for private securities will find PPEX insufficient—private securities remain fundamentally illiquid.
Key Tradeoffs
Vertical Integration vs. Vendor Lock-In
North Capital offers a comprehensive stack (BD + tech + escrow + ATS) enabling platforms to build on a single provider. This simplifies operations but creates dependency—migrating away from TransactAPI or NCPS's broker-dealer umbrella would require significant effort and potentially disrupt platform operations.
Managing BD Speed vs. Autonomy
Firms can launch under North Capital's BD in weeks rather than 12+ months for their own registration, at a fraction of the cost ($10K-$50K vs. $100K+ for own BD). However, they operate under North Capital's compliance supervision and must defer to its risk appetite and compliance decisions.
PPEX ATS Availability vs. Actual Liquidity
PPEX provides a regulated, SEC-registered venue for secondary trading of private securities—a genuine competitive differentiator. However, listing does not equal liquidity. Many securities may have no active buyers, and total dollar volume has been modest relative to primary market activity.
Institutional Pedigree vs. Operational Scale
Founder Jim Dowd brings Bear Stearns institutional experience and 35+ years in finance. However, the firm operates with approximately 38 registered persons—lean for supporting 502K+ primary transactions and multiple high-volume platform clients. The 2020-2021 filing delays may reflect operational growing pains.
Who This Is Not For
Individual Investors Seeking Direct Investment Access
North Capital is B2B infrastructure—individual investors cannot invest through it directly. Use end-user platforms (Wefunder, StartEngine, Republic, etc.) that are powered by North Capital's infrastructure instead.
Investors Requiring Guaranteed Liquidity
PPEX ATS provides a secondary trading venue but does not guarantee active markets, fair pricing, or execution for any specific security. Private securities remain fundamentally illiquid even when listed on a regulated ATS.
Cost-Sensitive Platforms Unable to Benchmark Pricing
North Capital does not publish standardized fee schedules for any service line. Platforms seeking the lowest-cost broker-dealer services cannot benchmark without obtaining multiple competitive quotes from alternatives (Dalmore, DealMaker, Rialto).
AltStreet Perspective
Verdict
North Capital is one of the most comprehensive private markets infrastructure providers in the U.S., offering a vertically integrated BD/tech/escrow/ATS stack that few competitors match. The firm's infrastructure underpins major crowdfunding platforms (Wefunder, StartEngine, Republic) and its PPEX ATS addresses a genuine and growing need for secondary liquidity in private securities—SEC data shows private offerings grew from 61,355 in 2015 to 87,716 in 2024. The August 2024 FINRA AWC ($40,000 fine for late filings and communications violations) warrants transparency but was procedural, not substantive—no fraud or mishandling of funds alleged. For platforms evaluating North Capital, the key question is whether vertically integrated convenience justifies single-provider dependency. For individual investors, the takeaway is that understanding this infrastructure layer helps inform platform selection decisions.
Positioning
Essential B2B infrastructure for private markets—invisible to end investors but foundational to the crowdfunding and alternative investment ecosystem. Best suited for platforms and issuers needing turnkey broker-dealer coverage, transaction technology, and optional secondary trading. Not a direct investment platform.
"Comprehensive private markets infrastructure provider powering major crowdfunding platforms with full-stack BD/tech/escrow/ATS capabilities. Procedural FINRA violations (2024 AWC) warrant monitoring but do not indicate systemic risk."
Next Steps
For platforms/issuers: Request detailed pricing for managing broker-dealer services, TransactAPI licensing, and escrow facilitation. Compare against Dalmore Group, DealMaker Securities, and Rialto Markets for competitive benchmarking.
For platforms/issuers: Review PPEX ATS listing requirements and integration documentation if secondary trading is part of your distribution strategy. Schedule a demo of TransactCloud capabilities.
For platforms/issuers: Verify North Capital's current FINRA BrokerCheck status (CRD# 154559) as part of vendor due diligence. Request current SOC 2 report (not just SOC 3 summary) and review operational capacity commitments.
For individual investors: If investing through a platform powered by North Capital, your due diligence should focus on the platform/issuer, not North Capital itself. However, verify that the platform's broker-dealer of record (if NCPS) maintains clean regulatory standing.
For individual investors seeking advisory: Contact North Capital Inc. (the RIA) directly through advisory.northcapital.com for fee-only, fiduciary advisory services on private market investments. Confirm fee structure and advisory agreement terms before engagement.
Related Resources
Frameworks
Similar Platform Reviews
- iCapital
iCapital is B2B private markets infrastructure for advisors (feeder funds + technology); North Capital is B2B infrastructure for platforms/issuers (broker-dealer + technology + escrow + ATS).
- Rally Road
Rally Road is a direct-to-consumer fractional collectibles platform; North Capital provides the underlying broker-dealer and ATS infrastructure that platforms like Rally Road may use.
🔍Review Evidence
Scrape Date
2026-03-12
Methodology
Review synthesized from: (1) North Capital website scrape of 57 pages including homepage, solutions, broker-dealer services, platform technology, escrow/custody, advisory, about us, careers, SOC 3, disclosure documents, blog posts, and case studies; (2) FINRA BrokerCheck report for CRD# 154559 including firm profile, regulatory history, and disclosed events; (3) Full text of FINRA AWC No. 2021069382001 (accepted August 15, 2024) detailing violations and sanctions; (4) BusinessWire press release (July 23, 2025) on PPEX ATS growth and FINRA OTC transparency data ranking; (5) PR Newswire / GlobalFintechSeries / Hedgeweek coverage of PPEX ATS launch (April 2020); (6) Securities.io founder interview with Jim Dowd; (7) PPEX.com public data on trading statistics and issuer resources; (8) SEC filings related to North Capital Funds Trust; (9) Primior Group analysis of tokenized securities ATS landscape. All company-reported figures (transaction volume, deal count, trade count) are unaudited self-reported metrics.
Scope
Platform infrastructure and services, regulatory standing, FINRA disciplinary history, PPEX ATS capabilities and limitations, technology product overview, advisory services, competitive positioning, fee transparency assessment, and investor implications. Review does not assess individual offerings processed through North Capital's infrastructure or evaluate specific platform clients' investment merits.
Key Findings
- •FINRA-VERIFIED: North Capital Private Securities Corporation is active FINRA/SIPC member, CRD# 154559, SEC# 8-68648, main office Salt Lake City UT, regulated by FINRA Denver Office (per BrokerCheck).
- •FINRA-VERIFIED: One regulatory disclosure event—AWC accepted August 15, 2024 for violations during April 2020–May 2021. Sanctions: censure and $40,000 fine. Violations: late filing of 92 private offering documents (average 163 days late) and retail communications lacking risk disclosures / improperly implying FINRA endorsement.
- •COMPANY-REPORTED: 3,502 deals facilitated, 502K primary transactions, $5.6B transaction volume, 220K secondary trades, 918 PPEX-approved assets (per northcapital.com homepage, undated, observed March 2026).
- •THIRD-PARTY-VERIFIED: PPEX ATS reported 4th highest number of trades for an ATS in over-the-counter equities for Q1 2025, per FINRA OTC transparency data (cited in BusinessWire press release July 23, 2025).
- •SEC-VERIFIED: SEC data shows private offerings increased from 61,355 in 2015 to 87,716 in 2024, with capital raised growing from $1.371 trillion to $3.223 trillion (compound growth rate 8.9% per annum)—cited in North Capital's July 2025 press release, sourced from SEC Division of Economic Risk Analysis March 2025 report.
- •COMPANY-REPORTED: PPEX ATS had matched 220K+ trades for $12M+ total value as of December 1, 2022 (per ppex.com/companies page). More recent dollar volume figures not publicly available.
- •COMPANY-REPORTED: Founded 2008 (RIA), broker-dealer registered with FINRA since 2011, blockchain/tokenization development since 2017, PPEX ATS approved April 2020 (per about page and press releases).
- •COMPANY-REPORTED: Managing broker-dealer services start between $10,000 and $50,000 depending on scope (per blog post on managing BD services). Specific pricing not publicly listed for technology or escrow services.
Primary Source Pages
- northcapital.com homepage—platform positioning, service overview, reported metrics (3,502 deals, 502K transactions, $5.6B volume, 220K secondary trades, 918 PPEX assets)
- northcapital.com/broker-dealer-services—managing BD model, digital-first approach, registered in 50 states, core service descriptions, flexible cost structures
- northcapital.com/platform-technology—TransactAPI, Opera IP, Opera IQ, accreditation verification, RESTful API, payment processing capabilities
- northcapital.com/escrow-custody—escrow facilitation under SEC Rule 15c2-4, self-clearing BD, Reg D/A+/S/CF coverage, real-time reporting
- northcapital.com/advisory—North Capital Inc. RIA services, fee-only fiduciary model, commission waiver/rebate policy, asset class coverage
- northcapital.com/about-us—company history (founded 2008 RIA, 2011 BD), Jim Dowd biography, blockchain/tokenization involvement since 2017
- northcapital.com/soc-3-report—SOC 2 examination acknowledgment, SOC 3 public report availability
- FINRA BrokerCheck CRD# 154559—firm profile, registration dates, regulated by FINRA Denver Office, disclosed events
- FINRA AWC No. 2021069382001—full text of violations (FINRA Rules 5123, 2210, 2010), sanctions ($40K fine, censure), signed August 5, 2024 by James Dowd, CEO
- BusinessWire (July 23, 2025)—PPEX ATS growth, 311 new securities added, 4th highest ATS trade count per FINRA Q1 2025 data, SEC private offering growth statistics
- ppex.com/companies—ATS capabilities, 220K+ trades for $12M+ value (as of 12/1/22), limit orders, RFQ functionality, issuer controls
- North Capital blog case study—Otis/Public using TransactCloud for Reg A+ offerings and PPEX secondary trading of fractional collectibles
Frequently Asked Questions
What is North Capital and how does it work?
North Capital is a B2B infrastructure provider for private securities markets, not a direct investment platform. It operates through three entities: a FINRA-registered broker-dealer (NCPS), a technology company (NCIT providing TransactAPI), and an SEC-registered investment advisor (North Capital Inc.). Platforms like Wefunder, StartEngine, and Republic use North Capital's broker-dealer services, technology, and escrow capabilities to power their investment offerings. Individual investors interact with these end-user platforms, not directly with North Capital.
Can individual investors invest through North Capital?
No, North Capital is B2B infrastructure—individual investors cannot invest through North Capital directly. Investors access private securities through the platforms and issuers that use North Capital's services. The one exception is North Capital Inc., the firm's registered investment advisor, which offers fee-only advisory services for individuals and families seeking guidance on private market investments.
What is the PPEX ATS and does it provide liquidity?
PPEX is an SEC-registered Alternative Trading System operated by North Capital for secondary trading of private and exempt securities, including digital asset securities. It had 918 approved assets and 220K+ matched trades as of mid-2025, ranking 4th among ATSs by trade count per FINRA data. However, listing on PPEX does not guarantee liquidity—many securities may have thin or no active trading. Investors should not invest in private securities assuming they can easily sell through PPEX.
Has North Capital had any regulatory issues?
Yes, FINRA issued a Letter of Acceptance, Waiver, and Consent (AWC) accepted August 2024 for violations during April 2020–May 2021. North Capital failed to timely file offering documents for 92 private placements (average 163 days late) and prepared retail communications that lacked required risk disclosures and improperly implied FINRA endorsement. Sanctions were a censure and $40,000 fine. The violations were procedural and administrative—no allegations of fraud or mishandling of investor funds.
Which platforms use North Capital's services?
Publicly known clients include major crowdfunding platforms such as Wefunder, StartEngine, and Republic, as well as alternative investment platforms like Otis (a subsidiary of Public) for fractional collectibles trading. North Capital has also published case studies involving real estate sponsors and fund managers. The complete client list is not publicly disclosed, but the firm reports facilitating 3,502 deals across its platform.
How does North Capital compare to competitors?
North Capital's closest competitors include Dalmore Group (broker-dealer focused on Reg A+ and Reg D offerings), DealMaker Securities (integrated fundraising and BD services), and Rialto Markets (broker-dealer and ATS operator). North Capital differentiates through vertical integration—offering broker-dealer, technology, escrow, and ATS under one roof. Direct pricing comparisons are difficult because none of these firms publish standardized fee schedules.