The purchase of shares in late-stage, pre-IPO venture capital-financed companies from existing shareholders is growing rapidly, as a result of market forces. Venture capital companies tend to be a lot older at IPO, as a result existing holders including founders, employees and early investors, need liquidity.
This provides the partners of Battlement Capital the ability to negotiate with exisiting shareholders a exit strategy that makes share available for Australian Wholesale Investors via a Unregistered Wholesale Managed Investment Trust (MIT) investment vehicle.
The Fund structure lends itself to become a longer-term passive investor for stocks, should the investor decide not to liquidate upon the disposal window for the stocks acquired. As stocks are acquired from secondary markets they may have lock out periods post the IPO, which will prevent immediate sale. The details of the stocks to be acquired and any restrictions will be provided prior to settlement.
The Fund aims to take advantage of inefficiencies and opportunities presented in the secondary market given the current shift in fewer, later and larger venture-backed IPOs and varying liquidity needs within private company shareholder bases.
Should you have any interest in the dataminr investment opportunity please use the contact details below.