Cache provides exchange funds that let investors swap concentrated, appreciated stock positions for diversified portfolios tracking major indices without triggering immediate capital gains taxes. The funds are custodialized at BNY Mellon, use Index Sync technology to maintain high benchmark correlation, and allow tax‑deferred redemption after a seven‑year holding period, charging an annual fee of 0.4%–0.95%.
Funding
$8.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Tech employees and other investors often hold large, concentrated positions in a single company's stock, exposing them to high unsystematic risk. Diversifying these holdings typically triggers capital gains taxes, creating a costly barrier to risk reduction.
Solution
Cache offers exchange funds that let investors swap appreciated single-stock positions for diversified portfolios tracking major indices such as the S&P 500 or Nasdaq‑100 without triggering immediate tax events. Contributions are treated as non‑taxable exchanges under IRC 721, allowing 100 % of pre‑tax capital to remain invested. The funds are custodialized at BNY Mellon, independently administered, and audited, providing institutional-grade security. After a seven‑year holding period, investors can redeem fund shares for a mix of ETFs and stocks, continuing to defer taxes while gaining broad market exposure. Cache’s “Index Sync” technology aligns fund holdings closely with benchmark indices, delivering low tracking error and transparent pricing with annual fees ranging from 0.4 % to 0.95 % and no sales charge.
Target Audience
Primary customers are tech employees, founders, and other high‑net‑worth individuals with concentrated equity positions, as well as wealth advisors serving accredited and qualified‑purchaser clients.
Features
- Non‑taxable stock‑for‑fund exchanges under IRC 721, preserving full pre‑tax value
- Multiple fund series (Flagship for qualified purchasers, Access for accredited investors) with minimums as low as $100 k
- Bi‑weekly fund closings and instant matching for rapid diversification
- Institutional custody at BNY Mellon and independent fund administration with annual audits
- Index Sync technology that maintains >0.98 correlation to benchmark indices, minimizing tracking error
- Transparent fee structure (0.4 %–0.95% annual) with wholesale discounts for advisory partners and no sales fees
- Ability to redeem after seven years into ETFs or individual stocks, continuing tax deferral