Finally, the tools you need to manage your clients' private company wealth
With Collective's unique wealth management solutions, you can turn your clients' illiquid private company shares into a smart, long-term financial plan
Diversify clients tax-free
- Diversify clients' over-concentrated positions in venture-backed companies by exchanging into portfolio of similar companies
- Exchanges do not trigger capital gains tax; tax savings compound in the fund at venture rates of return
- Professionally managed transactions supported by issuers
Generate client liquidity
- Generate immediate liquidity by selling a portion of the client's partnership interest via an LP BuyBack or, after a holding period, redeeming the partnership interest at the end of any quarter
- Instantly price shares of late-stage, venture-backed companies
- Avoid lengthy, bespoke negotiations with multiple buyers in brokered sale transactions
Deploy other advanced strategies
- Finance clients' exercise of stock options
- Use private company shares to create Donor Advised Funds
- Use private company shares to form Charitable Remainder Trusts
What is Collective?
Advisors managing public portfolios have every tool they need – diversification, hedging, tax optimization, structured liquidity. Advisors with private market clients have mainly had one tool: an outright, fully taxed sale, if the company permits it.
Collective was built to close that gap, with two products in one system. The Collective Exchange Fund lets your clients diversify concentrated pre-IPO positions and defer the capital gains tax. And Compass, our private market AI, identifies each client's optimal solution – built to inform the advice, not to sell a product – then connects you directly with your counterparty to execute. Private market intelligence and execution in a single, integrated system.
How does Collective work with advisors?
Collective works with advisors through Compass, our private market AI, and the team behind it. Compass weighs the paths available to each client, including solutions Collective does not sell, keeps every client's private equity in one place, and covers 1,800+ private companies with pricing built on Collective's own transaction data. When a client is ready to act, a dedicated relationship manager helps you execute, from the Collective Exchange Fund to vetted third-party providers.
How does the Exchange Fund enable Collective's solutions?
Employees of selected private growth companies exchange shares on a tax deferred basis for a limited partnership interest in Collective's diversified portfolio of leading private companies. The resulting diversification immediately reduce the employee's risk. The partnership interest can be monetized immediately through an LP BuyBack in which Collective repurchases part of the interest in a forward transaction. Alternatively, after a holding period, the interest can be redeemed for cash at the end of any quarter. The partnership interest can also be contributed to Donor Advised Funds or Charitable Remainder Trusts to create tax savings, lifetime income streams and charitable giving.
The tools your clients need to free their wealth
At Collective, your clients' shares unlock these wealth management strategies
Lifetime Income
Charitable Remainder Trust
Lifetime Income
Charitable Remainder Trust
Grow your assets tax-free while receiving annual cash distributions during your lifetime and reducing your taxes today
Tax Savings
Donor Advised Fund
Tax Savings
Donor Advised Fund
Get an immediate tax deduction by using your shares to donate to your charities
Risk Reduction
Exchange Fund
Risk Reduction
Exchange Fund
Exchange your shares tax-free into the Exchange Fund, a diversified portfolio of leading venture-backed companies
Liquidity
LP BuyBack
Liquidity
LP BuyBack
Receive cash on demand by selling part or your partnership interest back to Collective
Eligible Companies For Exchange
Financial Advisor FAQs
Helpful Documents & Articles
To learn more, visit our Articles
ArticlesLeverage our free online tools
Valuation Tool
Collective analyzes and integrates thousands of private market pricing signals to instantly value your clients' shares.
Value your client's shares
Liquidity Estimator
Compare the after-tax liquidity from an LP BuyBack to a stock sale with our Liquidity Estimator.
Liquidity Estimator
Your clients in Compass
Add a client to Compass and their private equity holdings, profile and goals stay in one place. Compass weighs the paths available to them, from diversification and liquidity to tax deferral and charitable planning, and gives you output you can put in front of the client. Early access is open at collectivecompass.ai.
