What are Multi-Company Funds?
Multi-Company Funds offer diversified exposure to 15+ pre-ipo investments through a single fund, with lower investment minimums making private market investing more accessible. Our flagship strategy is our Growth Opportunity Fund, which we launch a new vintage of annually. Each fund has a dedicated Investment Committee that conducts rigorous due diligence to select portfolio companies. The fund’s investment opportunities are sourced from EquityZen’s marketplace and deep network of over 700,000 shareholders and investors in the private markets and supported by in-house research. This is a great way to get diversified exposure to the pre-IPO market without having to pick individual companies.
What is the Minimum Investment?
Multi-Company Funds generally have lower investment minimums compared to similar private fund offerings. The minimum for these funds is $50,000. There may be limited slots available for a minimum investment of $20,000; however, only a few are available, as our fund structure constrains us to 99 slots for accredited investors. For lower minimums and greater diversity, our Multi-Company Funds offer exposure to a portfolio of 15+ vetted investments without the need to pick individual companies.
What is the Fee Structure?
Our fee structure is transparent and in line with industry standards for similar private funds. It includes an annual management fee of 1.70% - 2.75%, with breakpoints that depend on your investment size and for investing in earlier closings. Additionally, we have a 15% carried interest on capital in excess of committed capital and an expected 1.0% in uncapped expenses to cover fund administration and tax costs. All capital is called upfront.
Management Fee Breakpoints:
What is the Investment Process?
The funding timeline is structured around four separate 4-6 week closes, each with a specific schedule for investor participation. Each close has a period when it is open to investors, followed by a funding deadline and an official closing date.
Key dates to note for each close include:
Document Deadline: The last day for a potential buyer to reach a "PENDING" status to be included in the current close. This typically occurs less than one week before the Money Transfer Date.
Money Transfer Date: The date when EquityZen pulls funds from pending buyers or when wire transfers are due. This occurs approximately one to two weeks before the Escrow Break Date.
Escrow Break Date: The date when buyers are officially accepted into the deal, compliance review is complete, and subscription documents are countersigned.
Exact closing dates will be determined throughout the capital raising period and can be confirmed by reaching out to support@equityzen.com.
What investments are in the Fund’s portfolio?
The Fund’s investment term begins at the end of the initial closing, lasts for 12 months, and is subject to one 1-year extension at the Manager’s discretion. Following the initial closing, the fund will begin making investments to construct the portfolio, and investors will be notified when each investment is made.
What is the Fund’s Investment Strategy?
Our Fund invests primarily in the common or preferred stock of late-stage private companies with strong growth upside. The Manager leverages its extensive operating experience and strategic relationships to source deal flow with limited competition and enhance the value of our investments. The fund portfolios are expected to consist of 15+ private companies.
The Manager's investment process is designed to create a diversified portfolio of pre-IPO investments by:
Sourcing significant investment opportunities through the EquityZen platform and our broad network of relationships.
Applying selective investment criteria that focus on a subset of available opportunities. These criteria include:
Maturity: We generally focus on companies with estimated valuations greater than $500 million, that have raised more than $50 million in capital and that we assess have the potential for an exit in the next one to four years.
Investors: We prioritize companies that have raised funds from leading venture capital and private equity firms.
Pricing: We focus on companies with recent funding or those that can be purchased at a discount or as part of a primary round.
Relying on highly qualified and experienced management teams.
Creating a portfolio that seeks to generate residual value.
How long is the Fund Term?
5-8 year Fund Term
After the 5th anniversary of the final closing, the manager can extend the Term for up to three (3) additional consecutive, one (1) year periods
Term can be further extended to permit the orderly liquidation, sale, exchange, or other disposition of the Fund Series’ remaining Fund Investments
What Investor Reporting does the Fund distribute?
The Fund Series shall provide:
Quarterly financial statements providing summary financial information and other information regarding the Fund Series
Investor capital account statements
Tax information regarding each Fund Series for completion of Members’ tax returns
Is the Fund Audited?
The fund is audited for at least the duration of the minimum fund term. Our auditor is Richey May & Co., LLP.
How are Exits Processed and Fund Distributions paid out?
When portfolio companies exit the fund via an IPO or other exit events, all proceeds are distributed in cash to members on a pro rata basis until each has received their initial capital contributions. After this, carried interest is applied, with 85% of the proceeds attributed to the members and 15% to the manager.
Prior Funds
EquityZen has had 10 annual vintages of our flagship Growth Opportunity Fund, along with 15 more concentrated Thematic funds such as Artificial Intelligence & Machine Learning, Future of Fintech, and Most Requested.