Liquidity Fund
Systematic access to late-stage venture
The Collective Liquidity Fund provides investors with access to a diversified portfolio of the best late-stage, venture-backed private growth companies backed by the best VCs. Employing a systematic investment strategy, the Fund seeks to track the performance of the private growth asset category while providing investors with unmatched transparency and liquidity.
A selection of our Late-Stage Fund portfolio companies: See other companies eligible for exchange
Late-stage venture is a substantial and profitable asset class
Venture is where the growth is, and has outperformed public equities over the long term
The optimal moment to invest in venture capital is now
The Collective Liquidity Late-Stage Fund provides unique access to leading unicorns
| Category | Traditional VC | |
|---|---|---|
| Liquidity | Quarterly redemptions | 10-14 year hold |
| Shares Acquired at a Discount | 44% average discount to latest round | No discount |
| Winners Only | Curated portfolio of top performers1 | Most companies fail3 |
| Co-Investment as a Service | LPs self-select co-investments2 | Occasional access |
| Total Transparency | Daily NAV pricing | GP discretion |
1 Portfolio companies targeted are the strongest companies from leading VCs across all of their vintages. 2 Through Collective Liquidity's proprietary platform, LPs designate portfolio companies for co-investment. 3 In the typical VC model, the performance of each vintage's 1-2 winners is diluted by 8-12 losers.
Request more informationTargeting the Strongest Companies of the Leading VCs
Collective invests in the winners from across vintages of these and other leading venture capital firms:
Eligible Companies and Current Portfolio
Current holdings as of December 2024
Late-Stage Fund Overview
Name
Collective Liquidity Fund
Manager
Collective Asset Management
Fund Purpose
To provide institutional, family office and high net worth investors with efficient exposure to the late stage venture asset category
Investment Objective
Principally to provide long term exposure to the equity securities of late-stage, venture-backed, private growth companies
Investment Strategy
Systematic investment approach to construction of a diversified basket of late stage venture equities acquired through in-kind contributions and cash purchases
Target Returns
Representative of the late-stage, private growth asset category
Reporting
Gross NAV published daily, net NAV published monthly
Liquidity
Quarterly redemptions for cash subject to gate and holding periods
Eligible Investors
Accredited investors
Legal Structure
Limited partnership, perpetual, private 3(c)(1) fund
Fund Administrator
SS&C
Auditors
CohnReznick
Questions?
Your Collective Customer Service Representative is here to answer questions about the fund
How an Exchange Fund works
The Collective Charitable Exchange Fund is a pooled investment vehicle enabling shareholders in selected private growth companies to contribute their shares into the Fund without triggering a capital gains tax. In return, they receive a limited partnership interest in the Fund of equal value. So, for every $100,000 worth of shares contributed into the Fund, the shareholder receives a $100,000 limited partnership in the Fund. That partnership interest can then be contribute to a Donor Advised Fund or Charitable Remainder Trust.
Investment Strategy: Passive Approach
The Collective Liquidity Fund combines a passive approach to portfolio management with a unique method of sourcing shares in the most promising private growth companies. Rather than the “classic” venture capital approach of attempting to outperform the market with a relatively small number of investments, the Fund seeks to generally represent the returns of the late-stage, private growth company asset category by aggregating shares of over 100 leading private growth companies on a rolling basis through Collective's online platform.
Portfolio Company Selection
Companies are selected for the Target Portfolio by the Collective Investment Committee. Comprised of experienced, accomplished venture capitalists, the Investment Committee first screens U.S. private growth companies valued at over $600mm by a number of objective criteria including the backing of certain recognized venture capital firms and minimum amounts of capital raised. The Investment Committee then individually reviews each of the remaining companies, seeking to select those that have the best risk adjusted opportunities for long term value creation.
Unique Acquisition Pipeline
The Collective Liquidity Fund acquires these shares primarily by having the employees and shareholders of the targeted companies exchange their shares for partnership interests in exchange funds affiliated with the Collective Liquidity Fund. Because such exchanges do no trigger capital gains taxes under U.S. tax laws, the employees are able to diversify much more cost effectively than they could by selling their shares and purchasing diversifying assets with the after-tax proceeds. If the exchanger needs liquidity, they are able to borrow via a non-recourse loan secured by their partnership interests. Many unicorn employees can generate substantially more after-tax liquidity from such loans than they can from stock sales. As a result, where other secondary funds must compete for deals one-by-one, the Fund benefits from a unique, scalable, fully digitized pipeline of the most desirable shares.
Experienced Team
The Collective Liquidity Fund is managed by the Collective Investment Committee. The Committee is comprised of experienced venture capitalists and fund managers. The Committee is responsible for selecting companies for the Fund's portfolio and overseeing the Collective Private Market Valuation Algorithm which dynamically prices portfolio company shares.
The Collective Valuation Algorithm
Collective's proprietary Private Market Valuation Algorithm dynamically prices shares of venture-backed, private growth companies and allocates exchange eligibility across the companies eligible for exchange into the Fund. The Fund relies on the algorithm for:
- Valuing shares being exchanged into the Fund
- Establishing loan-to-value ratios for loans secured by partnership interests
- Determining the Fund's Net Asset Value
- Valuing limited partnership interest for quarterly redemptions
The algorithm is designed to output real time valuations of private growth companies representative of the current market clearing price for their shares (as opposed to determining the company's value based on its future value based on fundamental analysis). As a result, the Fund's limited partners have transparency into the value of their capital accounts that is unique in the venture capital industry.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.Warren Buffet, Investor / Entrepreneur / Philanthropist
Jeff Nazzaro, Chief Capital Officer
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Disclosures
This information relating to the Collective Liquidity Fund, LP (the “Fund”) has been prepared solely for informational purposes, is not complete, and does not contain certain material information about the Fund, including important disclosures and risk factors associated with an investment in the Fund, and is subject to change without notice. It does not constitute an offer to buy or sell an interest in the Fund, nor shall there be any sale of a security in any jurisdiction where such solicitation or sale would be unlawful.
The Fund’s limited partnership interest will not be registered with the U.S. Securities Exchange Commission or other regulatory authority. Investors will be required to verify their status as an “Accredited Investor” pursuant to Rule 501 of Regulation D to participate in any offering of the Fund’s limited partnership interests. No securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through Collective Liquidity, Inc. or Collective Asset Management, LLC (collectively, “Collective Liquidity”).
Limited partnership interests in the Fund are not insured by the FDIC and are not deposits or other obligations of Collective Liquidity and are not guaranteed by Collective Liquidity. Limited partnership interests in the Fund are subject to investment risks, including possible loss of the principal invested.
Prospective investors should consider the investment objectives, risks, fees and expenses of the Fund carefully before investing in the Fund. This and other important information are contained in the Fund’s Confidential Private Placement Memorandum (“PPM”), which can be obtained by contacting Collective Liquidity.
Investment in the Fund involves substantial risk and any offering may only be made pursuant to the relevant PPM and the relevant subscription application, all of which must be read in their entirety. No offer to purchase securities will be made or accepted prior to receipt by the offeree of these documents and the completion of all appropriate documentation. The Fund intends to primarily invest in securities of private, late-stage, venture-backed growth companies. There are significant potential risks relating to investing in such securities. The Fund is not suitable for investors who cannot bear the risk of loss of all or part of their investment. The Fund is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment. The Fund has no history of public trading and investors should not expect to sell limited partnership interests in the Fund. No secondary market exists for the Fund’s limited partnership interests, and none is expected to develop. The Fund has a limited operating history, and its performance is highly dependent upon the expertise and abilities of its manager. There is no assurance that the Fund’s investment objectives will be achieved, and results may vary substantially over time. This is not a complete enumeration of the Fund’s risks. Although the manager of the Fund will value its portfolio using the Private Market Valuation Algorithm, it can be difficult to obtain financial and other information with respect to private companies, and even where the manager is able to obtain such information, there can be no assurance that it is complete or accurate. Because such valuations are inherently uncertain and may be based on estimates, the manager’s determinations of fair market value may differ materially from the values that would be assessed if a readily available market for these securities existed.
The information contained herein does not constitute a recommendation or advice by Collective Liquidity. You should consult your own tax, legal, accounting, financial or other advisers about the information discussed herein based on your specific risk profile and financial situation, including the suitability of an investment in the Fund, with Collective Liquidity, or any product managed by Collective Liquidity.
The information contained herein is for informational purposes only. This material contains the current opinions of Collective Liquidity and such opinions are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
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