Want to hold the portfolio longer, or let some investors out? Here is how, without moving anyone against their will.
If you are a general partner with a portfolio worth holding longer, the friction is not the design of the fund. It is the mark, the consents, and the fear of existing holders that something changes under them. This page is what we do about each.
$305M+ in assets structured and supported · 100+ companies · 20+ countries · founded 2018
For managers holding a portfolio longer than the fund was meant to
What private equity tokenization changes for you.
Not a demonstration of what we can do. Four things you can do with a private equity vehicle once the record, the raise and the token are in place.
Put an outside valuation above your own
A licensed valuer's number and audited accounts sit at the top of the file. Your own estimate sits below them, clearly labelled.
Leave existing holders exactly as they are
A new vehicle alongside. Nobody converted, everyone with their own counsel.
Let investors out through a defined window, not a negotiation
A licensed broker-dealer runs the sale, and the list of holders fills in as each commitment settles.
Know where you stand in about eight minutes
Twenty-five questions, a score, and the list of what is missing. Free, and nobody calls you.
Your problems, and what we do about them
Why private equity tokenization is slow today, and what fixes each problem.
Written in the owner’s words. If yours is not on the list, the readiness score will find it in about eight minutes, and nobody calls you.
Somebody has to mark it, and nobody outside has
Independent valuations and audited statements enter the record at their tier, above the manager's mark.
A conversation about price, not about trust.
Existing holders fear conversion
The new vehicle is issued alongside; existing interests stay what they are.
A deal the advisory committee can approve.
A strong record does not create a market
The token carries holder caps, minimums and consents; a path to secondary trading runs through licensed venues.
Transferable inside the rules, honestly. Not promised liquidity.
Intelligence · the record
Due diligence for a private equity vehicle: why you would use Intelligence.
Because the valuation and the consents are the whole conversation.
An outside valuation at the top of the file
Valuations from a licensed valuer and audited accounts sit at the top. The manager’s own number is in the file too, one level down, and nobody confuses the two.
The consents a buyer will look for
The partnership agreement, the minutes of the investor advisory committee, the group of investors that signs off on conflicts, and the list of existing stakes, each with its document, so the authority to do the deal is visible.
Portfolio reporting reconciled to the accounts
What the portfolio companies report, next to what the fund’s statements say, so the numbers a buyer reads are the numbers the auditor saw.
An example, made up for this page. Say you plan a new vehicle to hold two portfolio companies longer. You upload the agreement, the committee minutes, the outside valuation and the portfolio reporting. The record shows one consent depended on a valuation date that has since passed. It is refreshed before any buyer sees the vehicle. How Intelligence works
Raisable · the raise
Raising capital for a private equity vehicle: why you would use Raisable.
An example, made up for this page. Say one buyer takes forty percent of the new vehicle and a group of smaller investors take the rest through a feeder. Your lawyer picks the exemption, both are prepared from the same record, and the holder list fills as each commitment settles.
The new vehicle documented from the record
The memorandum and subscription documents are drafted from facts that are already reconciled, and checked against the agreement that already exists.
Existing investors keep exactly what they have
The new vehicle is issued alongside the old one. Nobody is moved into it against their will, and each investor keeps their own lawyer.
A flat fee for the window, never a percentage
A licensed broker-dealer runs any regulated sale. No placement fee, no carry, no share of the deal at any layer of ours.
Compass · tokenization
How private equity tokenization works, and why it makes sense.
Because the restrictions are the point, and the asset should carry them.
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Limits the contract enforces
Caps on how much one holder may own, minimum tickets, country limits and consent are conditions of the asset, checked every time a stake moves.
What you get
Limits the asset enforces every time a stake moves.
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A holder list that is right at the moment of transfer
The administrator reads from it rather than reconciling to it, and every distribution is written into the file.
What you get
A holder list that is right at the moment of transfer, not reconciled afterwards.
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Transferable inside the rules, and we do not say more than that
There is a path to secondary trading through licensed venues, and the decision to list rests with them. What changes is the friction, not the design.
What you get
Money that reaches the new holder on the date it is due.
An example, made up for this page. Say a holder in the new vehicle wants out in year three. The buyer is checked against the rules by the contract, the transfer settles, and nobody rebuilds the holder list. The next distribution reaches the new holder on the date it is due. How Compass works
Side by side
Private equity tokenization side by side: the same four questions, before and after.
Nothing here needs the rest of the page. If the right column is not worth the work to you, the answer is no, and that is a fine answer.
The valuation
The manager’s own, argued over
An outside one, at the top of the file
Existing investors
Asked to move into something new
Left as they are, a new vehicle alongside
A transfer
A negotiation, with consents chased by email
A check the contract runs
Selling a stake
Promised as liquidity, rarely delivered
Not promised. Transferable inside the rules
Our clients
Private equity tokenization case studies: named work, and the marks that go with it.
Deal-level and company-level structures, where the question is usually who may hold what, and when they may sell. Three are below, and the others follow.
Novitas
Switzerland · Token structuring
We delivered a cost-efficient way to bring private equity investments across several sectors under a single digital asset.
What that means for you
One instrument instead of one per deal, which is most of the running cost.
Global Leaders Capital
United States · Regulatory framework
We provided a deal-by-deal tokenization framework and the governance model that future investments would run on.
What that means for you
The next deal reuses the structure instead of starting from the beginning.
Advantic Building Group
United States · Token structuring
We designed an equity token that funded research, strengthened the balance sheet, and let a founder sell part of his own stake in the same round.
What that means for you
A founder can take some money off the table without selling the company.
Our clients in this sector
Every name here is published with the client’s agreement on our case studies. Deal sizes, terms and returns are not ours to publish and are not here. The rest of the client list is private, and we will introduce you to the ones closest to your situation when we speak.
In plain English
Private equity tokenization terms: six words this page uses, in plain English.
You do not need any of this to talk to us. It is here because these words get used at you in meetings, and knowing them is worth more than nodding along.
Portfolio company
One of the businesses a fund or a holding company owns. The value is in these, not in the vehicle that holds them.
Continuation vehicle
A new fund set up to buy assets from an older one, so the manager can hold them longer. Investors who want out are paid; investors who want to stay roll in.
Carry
The share of profits a manager keeps. We never take it, on any deal, at any layer. It is a manager’s economics, not a technology provider’s.
Secondary
A sale by an existing investor to a new one, rather than new money going into the vehicle.
The mark
What the manager says the portfolio is currently worth. It is an opinion until somebody independent signs one, which is why an outside valuation changes the conversation.
Partial exit
Selling some of your stake and keeping the rest, usually so a founder can take money off the table without losing the company.
What you will be asked for
Documents needed for private equity tokenization, and who has to have issued them.
Every answer in the record carries its document and a proof tier from T0 to T5. A number you typed and a number from a registry both get in, and they are not stored as though they were equal.
The partnership agreement and committee consents
T4Signed by the other side
Outside valuation of the portfolio
T5A licensed valuer
Audited fund accounts
T5An auditor
The list of existing stakes
T3Your books
Portfolio company reporting
T3The portfolio companies
Where this usually stops: stage 04 · Package. The fund’s existing terms and the offering terms have to be reconciled, not merely restated. The six stages are on the Compass page. T5 is issued by an authority, T4 is signed by the other side, T3 is your accounting system of record; anything asserted without a document sits at T0, and the score will say so.
When this is not for you
When private equity tokenization is not for you: three cases, in advance.
Said here so you can leave without a call. It is cheaper for both sides than discovering it in week six.
A portfolio nobody outside the firm has ever valued.
A manager who wants a public market for fund stakes with no outside valuation behind them.
A structure where existing investors would be moved without their own lawyer.
Primary sources: Investment Company Act, section 3 - including the 3(c)(1) and 3(c)(7) exclusions – 15 U.S.C. 80a-3 · Regulation D, Rule 506 – 17 CFR 230.506.
Questions
Tokenized private equity interests, answered briefly.
Short answers, taken from this page and the rest of the site. The long versions are above.
What are tokenized private equity interests?
Tokens that represent an interest in a private equity vehicle, usually units in the fund or an SPV that holds the stake. The transfer restrictions are enforced by the asset itself, so an interest can only move to a holder the rules allow.
Does tokenizing a private equity interest create liquidity?
It does not promise any. It lets some investors out and others in, inside the rules, where the issuer and regulation allow it. Existing holders are never moved against their will or without their own lawyer.
Which rules apply to a tokenized private equity vehicle in the US?
Typically the Investment Company Act exclusions in section 3(c)(1) or 3(c)(7) and a private offering under Regulation D, Rule 506. Your counsel picks the exclusion and the exemption.
Is this the same as tokenizing the whole fund?
Not quite. Running a fund with limited partners and side letters is covered on fund tokenization services; the mechanics of LP units are in how to tokenize a private equity or VC fund.
What does Stobox do, and what does it not do?
Intelligence builds the record a buyer checks, including an independent mark; Compass issues the interests with the rules enforced on-chain. Stobox is a technology provider. It is not a broker-dealer, investment adviser, custodian or law firm; any regulated sale runs through a licensed firm, and the exemption is chosen by your counsel. Fees are flat, never a percentage of the raise.
Three steps to a call
Find out where a private equity vehicle stands.
Start with the score, ask the founder if you want to, then bring it to a call. Prefer email? info@stobox.io.
Score your asset
The Readiness Score: twenty-five questions across seven dimensions, about eight minutes, no email to see the result.
Take the Readiness ScoreAsk the founder, live
Founder Office Hours with Gene Deyev: 40 minutes on Zoom, Mondays 1 PM ET and Thursdays 2 PM ET.
Join Founder Office HoursBook a call
Bring the asset and the score. We will say what is missing, and say so if the answer is no.
Book a call
Stobox Technologies Inc. Nothing on this page is an offer to sell or a solicitation to buy any security, and nothing here is legal, tax or investment advice. Stobox is not a broker-dealer and not a law firm; regulated activity runs through licensed firms and listing decisions rest solely with the venue. All figures are indicative and are confirmed in writing in your quote. See the privacy summary.