What is an in kind distribution?

Distributions-in-kind are payments made in an alternative format, such as property or stock, instead of cash. Companies and organizations use distributions-in-kind to minimize their tax liabilities and circumvent capital gains tax accruing from an increase in the asset’s value.

What are distributions in private equity?

A distribution waterfall a way to allocate investment returns or capital gains among participants of a group or pooled investment. Commonly associated with private equity funds, the distribution waterfall defines the pecking order in which distributions are allocated to limited and general partners.

What is the minimum investment in SharesPost?

Forge/SharesPost requires a minimum selling amount of $100,000. Unfortunately, you can’t pool your shares with other shareholders to meet this minimum (like you can on EquityZen).

What is the SharesPost 100 fund?

(“Liberty Street”) today announced that the SharesPost 100 Fund (the “Fund”) has a new name: The Private Shares Fund. The Fund is a non-diversified, closed-end interval fund investing in private, operating, late-stage, venture-backed growth companies.

What does in kind mean legally?

Refers to payment, distribution, or substitution of goods or services in lieu of money.

What is an in kind distribution from a 401k plan?

An in-kind IRA distribution means moving stock from your tax-advantaged retirement account into a taxable investment account—such as a brokerage account—without liquidating the shares first.

How cash flow is distributed in the private equity?

As private equity funds create value, they distribute cash proceeds back to investors. Therefore, the investors’ exposure to private equity declines as cash distributions are returned to the investor.

What is a distribution hurdle?

Distribution Hurdle means, with respect to each Profit Unit, an amount equal to the amount specified as such in the applicable Profit Unit Agreement for such Profit Unit.

Do I need to be an accredited investor for SharesPost?

You must be, at minimum, an “accredited investor” to purchase private company securities. The process can extend up to months from acceptance of your posted interest to closing of a transaction.

Who are EquityZen competitors?

EquityZen’s competitors are tZERO, Compound, Raison, EquityBee, InvestX and more.

Can private companies sell stock?

Selling stock in a private company is not as simple as selling stock in a public company. Employees or investors can sell the public company shares through a broker. To sell private company stock—because it represents a stake in a company that is not listed on any exchange—the shareholder must find a willing buyer.

What is private share fund?

The Private Shares Fund seeks capital appreciation by focusing on investments in late-stage, venture-backed private companies. As compared to startups and earlier-stage venture companies, these companies have more established product lines and customer bases, and typically have displayed revenue growth.