Shareholders of unicorn companies often have a significant portion of their wealth tied up in a single, illiquid asset, making diversification challenging. Traditional stock sales can trigger substantial tax liabilities, reducing the net proceeds available for reinvestment.

Collective Liquidity offers a tax-advantaged Exchange Fund that enables unicorn shareholders to diversify their holdings into a portfolio of leading private companies. Shareholders exchange their shares tax-free into the Exchange Fund, gaining exposure to a diversified portfolio of venture-backed companies. They can then access immediate liquidity through a non-recourse Exchange Loan, receiving cash while retaining potential upside from the fund's performance. This approach reduces risk by diversifying holdings and provides liquidity without triggering immediate capital gains taxes.

Tax-free exchange of unicorn shares into a diversified portfolio of late-stage private companies

Non-recourse Exchange Loans provide immediate liquidity without triggering a taxable event

Proprietary algorithm for determining bids on private company shares

Access to wealth management solutions typically used by sophisticated investors

Risk reduction through diversification of concentrated equity positions

The primary target audience includes shareholders and option holders of late-stage, venture-backed unicorn companies seeking to diversify their holdings and access liquidity without incurring significant tax liabilities.