About Collective

At Collective Liquidity, we are dedicated to providing unicorn shareholders with the financial tools they need to effectively manage their wealth.

Over the past decade, our team has launched the private market’s largest, most innovative platforms. Now, we are leveraging everything we learned along the way to deliver unicorn employees and investors with dramatically better liquidity and risk management solutions – solutions that enable them to finally and fully unlock the value they helped create.

We invite you to meet our team and learn how each of us is committed to Freeing Your Wealth!

Compared to a stock sale, Collective Liquidity is fast, easy and can deliver more after-tax cash for your shares.

The Collective Exchange Fund and Loans

The Collective Exchange Fund enables you to reduce the risk of holding a single stock by exchanging your stock for a partnership interest of equal value in our diversified portfolio of other leading unicorns like yours.

Exchanges into the fund are tax-free and, after one year, you can redeem your partnership interest for cash at the end of each quarter.

With an Exchange Loan, you can also borrow against your partnership interest on a non-recourse, tax-free basis to generate immediate cash whenever you need to. Because Collective Exchange Loans are tax-free and non-recourse to the borrower, they provide many shareholders with more cash after-tax than they’d receive from a stock sale.

Shareholders of companies like these can gain fast, easy diversification and liquidity by exchanging into the Collective Exchange Fund:

How It Works

If you're a holder of shares or options in a unicorn company, Collective offers you the best way to monetize your holdings while reducing your risk:

1

Exchange your shares for a partnership interest of equal value in the Collective Exchange Fund, our diversified portfolio of leading unicorns like yours.

2

Then, with a non-recourse Exchange Loan, receive immediate, tax free cash up to 65% of the value of your partnership interest at any time. *

3

When the time is right for you, redeem your partnership interest to pay off your loan and keep any leftover value - earning you even more in a tax efficient manner.


01

If you hold $100,000 worth of shares in one of the companies in our Exchange Fund portfolio, you can exchange your shares for a $100,000 partnership interest in the fund. This diversifies your holdings and reduces your risk.

02

In our example, you can immediately borrow $65,000 with a Collective Exchange Loan and use the proceeds for whatever you want. And because you don’t sell your partnership interest for the money - you just borrowed against it - your partnership interest continues to appreciate in value over time.

03

Finally, if you decide to pay off your loan two years later when your partnership interest is worth $120,000, you would keep the original $65,000 plus retain an Exchange Fund limited partnership worth $55,000 that you can redeem for additional cash at the end of any quarter. This is 3.1 times the after-tax liquidity you might have expected from a stock sale.

Compare the after-tax liquidity from an Exchange Loan to a stock sale

  • Number of options

  • Option exercise price per share

  • Current value per share today

  • Current 409a valuation

    If you’re not sure, leave this field blank

Exchange Loan
Option exercise cost
$ -
Cash after tax and fees today
$ -
Potential after-tax fund distribution in 7 years¹
$ -
Total potential after-tax proceeds
$ -
Stock sale
Option exercise cost
$ -
Cash after tax and fees today
$ -
Potential after-tax fund distribution in 7 years
None applicable
Total potential after-tax proceeds
$ -
¹ See the underlying assumptions and analysis for this estimate
Exchange Loan
Cash from non-recourse loan today
$ -
Potential after-tax Exchange Fund distribution in 7 years¹
$ -
Total potential after-tax proceeds
$ -
Stock sale
Cash after tax and fees from sale today
$ -
Potential after-tax Exchange Fund distribution in 7 years
$ -
Total potential after-tax proceeds
$ -
¹ See the underlying assumptions and analysis for this estimate

Benefits

Collective Liquidity's combination of exchanges and non-recourse loans can reduce your risk, deliver dramatically more after-tax liquidity and is faster than a stock sale.

Reduce Risk

The Collective Exchange Fund lets you reduce your risk with a tax-free exchange of shares in a single company for an interest in a diversified portfolio of leading unicorns. The fund is designed to provide passive investment returns representative of the unicorn asset category.

More Liquidity

A Collective Exchange Loan can deliver more immediate after-tax liquidity than a stock sale, and then deliver even greater liquidity later when you redeem your fund interest to repay the loan and keep whatever is leftover.

Faster and easier

Compared to a stock sale which requires you to connect with a broker, find a buyer, negotiate price, and draft transaction documents, a Collective Exchange Loan is fast and easy. Our online application process takes just five minutes to complete.

Still have questions?

Our friendly advisors are happy to answer any questions, just a click away.