• Main
  • Detailed calculator breakdown

The Collective Exchange Loan - detailed calculation breakdown

I have

  • 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 and the calculator will assume the 409A is 15% of the share value

See the assumptions used for these preliminary estimates below

1. Exchange your shares for a limited partnership interest in the Collective Liquidity Exchange Fund of equal value

  • Number of shares exchanged

    -

  • Value of exchanged shares

    $ -

  • Value of Exchange Fund LP interest issued to exchanger

    $ -

  • Taxes

    $ -

  • Brokerage commissions

    $ -

  • Exchange Fund capital account issued to exchanger

    $ -

2. Receive Non-Recourse Exchange Loan Today

  • Gross loan proceeds *

    $ -

  • Less first year interest

    $ -

  • Less loan origination fee

    $ -

  • Less options exercise price

    $ -

  • Less estimated tax on disqualifying disposition of ISO

    $ -

  • Net after-tax cash received from loan

    $ -

3. Receive a Distribution from the Exchange Fund to Payoff Loan - Keep Whatever's Leftover

  • Potential value of Exchange Fund Interest after 7 years

    $ -

  • Less Exchange Loan repayment

    $ -

  • Less taxes owed due to fund interest redemption to payoff loan

    $ -

  • Potential net value of Exchange Fund distribution

    $ -

  • TOTAL POTENTIAL AFTER-TAX PROCEEDS

    $ -


* The value of the shares you entered is below the required minimum transaction value to be eligible for an Exchange Loan

The above calculations are based on the following assumptions:

(i) Federal and state tax rate for capital gains is , (ii) holding period for Exchange Fund limited partnership interest is years (you may redeem earlier than years but may then be taxed on the final Exchange Fund distribution), (iii) at end of holding period, the limited partnership interest is redeemed to repay loan and taxes arising from the redemption, (iv) the remaining limited partnership interest is then distributed in the form of Exchange Fund portfolio securities, and (v) the average return on the Exchange Fund net of all fees is 12.5% . The assumed 12.5% average return on the Exchange Fund is hypothetical. Hypothetical performance results have inherent limitations. No representation or guarantee is being made that the Exchange Fund will achieve any particular results. There are frequently differences between hypothetical fund results and the actual results subsequently achieved. The assumed average return on the fund is not necessarily indicative of future performance.

See the assumptions used for these preliminary estimates below

1. Exchange your shares for a limited partnership interest in the Collective Liquidity Exchange Fund of equal value

  • Number of shares exchanged

    -

  • Value of exchanged shares

    $ -

  • Value of Exchange Fund LP interest issued to exchanger

    $ -

  • Taxes

    $ -

  • Brokerage commissions

    $ -

  • Exchange Fund capital account issued to exchanger

    $ -

2. Receive Non-Recourse Exchange Loan Today

  • Gross loan proceeds *

    $ -

  • Less first year interest

    $ -

  • Less loan origination fee

    $ -

  • Less options exercise price

    $ -

  • Less estimated tax on disqualifying disposition of ISO

    $ -

  • Net after-tax cash received from loan

    $ -

3. Receive a Distribution from the Exchange Fund to Payoff Loan - Keep Whatever's Leftover

  • Potential value of Exchange Fund Interest after 7 years

    $ -

  • Less Exchange Loan repayment

    $ -

  • Less taxes owed due to fund interest redemption to payoff loan

    $ -

  • Potential net value of Exchange Fund distribution

    $ -

  • TOTAL POTENTIAL AFTER-TAX PROCEEDS

    $ -


* The value of the shares you entered is below the required minimum transaction value to be eligible for an Exchange Loan

The above calculations are based on the following assumptions:

(i) Federal and state tax rate for capital gains is , (ii) holding period for Exchange Fund limited partnership interest is years (you may redeem earlier than years but may then be taxed on the final Exchange Fund distribution), (iii) at end of holding period, the limited partnership interest is redeemed to repay loan and taxes arising from the redemption, (iv) the remaining limited partnership interest is then distributed in the form of Exchange Fund portfolio securities, and (v) the average return on the Exchange Fund net of all fees is 12.5% . The assumed 12.5% average return on the Exchange Fund is hypothetical. Hypothetical performance results have inherent limitations. No representation or guarantee is being made that the Exchange Fund will achieve any particular results. There are frequently differences between hypothetical fund results and the actual results subsequently achieved. The assumed average return on the fund is not necessarily indicative of future performance.