SOLUTIONS
Personal Liquidity
A better way to achieve liquidity
You’ve worked hard for your equity – why wait to use it? We provide you with the liquidity you need so that you can realize your financial goals and dreams, while also benefiting from any future share appreciation. Selling shares may make sense at times, but it can be tax inefficient and may leave too much value on the table at today’s price.
Get cash without selling your shares
Liquidity with less risk
We advance funds without requiring you to sell your shares. Our solution is different than a loan as we take duration risk (there is no fixed maturity date), you don’t have any payment obligations until your liquidity event and we take equity risk so the money we advance you is yours even if your shares go to zero.
Tax optimization opportunity
Our solutions are structured to avoid triggering a taxable liquidity event up front. In some cases, the cost of capital may be treated as a capital loss to offset future capital gains2.
Win-win-win solutions
Liquid Stock is fully independent and institutionally backed. We work closely with you and your advisors to understand your financial needs and design smart capital solutions that provide the liquidity you need while maximizing your equity opportunity.
How does liquidity work?
Funding
Liquid Stock advances you money for personal liquidity that you can use for any purpose.
Wait Until You're Liquid
No cash is due until you can get liquidity from your private shares.
Settlement date
The amount you pay, if any (Liquid takes equity risk), depends on how the company performed and how long it took.
After
You decide whether to sell or keep your shares, and how to optimize your taxes.
Prefer to Sell or Exchange your shares?
Insights from our team
What questions should you ask?
What does Liquid Stock do?
We provide liquidity solutions for private company equity holders that can optimize taxes, reduce risk, and help maximize your net worth. If you need money for personal use or to exercise your options, we may be able to help.
Can Liquid Stock help me tailor my path to liquidity?
Maybe! We understand there is no one-size fits all. The right solution should be based on your individual circumstances. Our transactions are based on transparency, honesty, mutual understanding, and a proven history of fair dealing.
How does Liquid Stock work if I already hold shares?
We can (1) provide liquidity to shareholders without requiring you to sell your shares, (2) buy your shares, (3) help you sell your shares without charging a fee and/or (4) help you exchange them for equity in a publicly listed company providing diversification and liquidity. For most people, a combination of one of the above paths may be the best route for you.
Why is it important to transact with a counterparty you can trust?
Our reputation has been built on providing a liquidity solution that allows company option holders and shareholders to benefit from the future upside of their equity. Our option exercise and personal liquidity solutions entail counterparty risk – this is when one party in the transaction does not live up to the terms of the agreement. Unlike a sale, where both parties agree to a price, effect a share transfer, and have no further obligation to one another. These types of transactions can be open for years and both parties are relying upon the other to manage the transaction according to their agreement. Therefore, it’s important to choose an experienced partner, like us, who has a history of honesty and fair dealing. With these solutions, unless there is an event of default, we only look to the value of your shares as collateral, and if the value ends up being less than would otherwise be due on settlement, we assume the loss. This is a risk that must be priced into our transactions and part of the reason we receive a percentage of the value of your shares at settlement.
What are the different solutions that Liquid Stock provides?
Liquid Stock advances the cost of exercise and taxes enabling you to exercise your options today. There are many reasons you may decide to do this, reducing your taxes is normally top on that list. By exercising today you convert all future gains from ordinary income to capital gains, and if you hold your shares for at least twelve months, long term capital gains. That could make the difference of millions.
How does Liquid Stock help with my stock options?
We offer solutions for personal liquidity, option exercise, secondary sales and public exchanges. Our personal liquidity and option exercise solutions are not loans as we assume both equity and duration risks, risks that we don’t believe private company shareholders typically should take. Since we assume these risks, it means that you may also receive tax benefits from our transaction. In some cases, we will also buy your shares if you are interested in selling. Our public exchange solution is powered by one of our partners who will either buy your shares or structure tax efficient exchanges. For either sales or exchanges we don’t charge you brokers or other fees as we aim to be the most efficient partner for all of your liquidity needs.
Are you ready to get Liquid?
Take ownership of your stock options or shares today.
1 As used on this website “non-recourse” means that a transaction counterparty is not personally liable for the difference between the value of the advance made to the counterparty and the value of the collateral shares upon a liquidity event or upon such other time(s) as defined in the transaction agreement, if the value of the collateral shares is less than the advance or other amount owed. In Liquid Stock transactions, the Counterparty will be personally liable in certain enumerated “Events of Default” defined in the applicable transaction agreement. These events include but are not limited to, failure to pay amounts owed under the agreement when due, breach of representations and covenants, and transfer of collateral shares in violation of the transaction agreement. Following such an “Event of Default” a transaction counterparty may be personally liable for the entire amount due under the agreement, even if it exceeds the value of the collateral shares.