The net asset value per share (essentially equivalent to share price) will be determined on the basis of valuations of the Fund's portfolio companies, typically driven by a number of potential pricing scenarios
The NAV (Net Asset Value) per share is essentially equivalent to the share price in the context of our fund structure. At the time of fund launch, the NAV was arbitrarily set at a value of $20/share, in line with industry norms. Over time we expect it will change and may move up or down.
The NAV will technically be struck on a daily basis, but it won't necessarily fluctuate on a daily basis. The NAV will take into account any time a portfolio company achieves a new valuation which would occur in any of the following scenarios:
- When a company is acquired
- When a company executes a public listing (or IPO)
- When a company goes onto raise in a subsequent round (for example, if we invested in a company in their Series A round, and then they went onto raise a Series B--whether or not The Cashmere Fund participates with a follow-on investment in the Series B, which we may do depending on the circumstance--the company would receive a new valuation and The Cashmere Fund's Fund Ops & Valuations team will incorporate that into the NAV)
- When a company dissolves and is unwound
Any of these events may impact the NAV positively, if the company's new valuation is higher than its previous valuation, or negatively, if the company's new valuation is lower than its previous valuation.
Because the aforementioned pricing events are relatively infrequent, we would expect the NAV to remain fairly constant until some of the earliest investments we make begin to mature and experience some of these pricing events a year or two in.