The Cashmere Fund is breaking the typical VC mold, offering biannual redemption windows so you can have access to your investment capital in a reasonable amount of time.
The redemption windows represent a protection required by the SEC for our particular fund structure, designed to both provide investors with liquidity options in case of emergency, as well as to protect the Fund and other shareholders from the potential instability that unmitigated redemptions would introduce. If an investor wants to liquidate completely, that is what the redemption windows are built for.
This is a long-term investment (should be thought of on the range of 5-10 years) and it's important that Members understand that moving in and out frequently would be against the interests of the Fund and shareholders collectively and therefore strongly discouraged. We do want to provide Members who have been invested in the fund for a long time with the option to request their entire position, which is why we are very excited to offer the bi-annual redemption windows.
In The Cashmere Fund's context, we will continue fundraising into the future (issuing more shares) and investing into more companies (continuously extending the end of life of the Fund) as an evergreen fund. The companies The Cashmere Fund has invested in will produce outcomes in the same way as a traditional VC fund, via exit events. We will provide Members with two options when there are cash-specific exit events in the Fund: they will be able to either reinvest the proceeds of that event into new shares at the current NAV, or to receive a cash distribution.
In review, a Member who wishes to liquidate their account at the end of their long-term hold period would be able to apply two strategies:
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Set their account preference to receive cash distributions from exit events, like a traditional VC fund. This can begin in the near term or wait until later in the fund cycle.
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Make one or more redemption requests during each bi-annual window, as needed.
While the timing would not be guaranteed, our expectation is that Members would be able to liquidate their position within 2-3 years, but potentially faster.