Liquid Stock (Liquid) has closed its flagship fund, Liquid Stock Fund I, with $161 million of capital. The fund is backed by some of the biggest names in secondaries; including $150 million from Goldman Sachs Asset Management, Coller Capital and Morgan Stanley Alternative Investment Partners.
Based in San Francisco, Liquid extends part-debt/part-equity financing to shareholders in private companies, collateralized against their holdings. This process allows those shareholders to monetize their equity without having to sell shares.
According to founding partner Jeffrey Le Sage, Fund I will conduct between 15 and 25 deals. So far, Liquid has done deals ranging from less than $1 million to $73 million. Liquid’s big-picture goal is to encourage companies to offer their solution as a plan for the entire workforce, instead of dealing with individual shareholders.
Le Sage commented, “If we love an issuer, we’ll do deals that are smaller in size to help people understand the benefits of what we can do on a company-wide basis.”