FAQs provide quick and easy answers to commonly asked questions, helping users find solutions quickly and efficiently.
The funds can accept investments from anyone who meets the SEC’s definition of “accredited investor” and can provide evidence to verify such status. At this time all of the funds that we allocate to are only available to qualified purchasers. By pooling capital, Poolit becomes a qualified purchaser and allows accredited investors as well as qualified purchasers to invest in these underlying funds.
Poolit believes deeply that the definition’s heavy emphasis on wealth and income as a barrier of entry is wrongheaded – if you agree, please support our petition at Change.org here.
Investing in a Poolit fund is not suitable for investors that require short-term liquidity. An investment also involves a high degree of risk, including the risk one’s entire investment may be lost. Poolit funds are subject to all of the business risks and uncertainties associated with any new business, including the risk that we will not achieve our investment objective and that the value of our investments could decline substantially. Our performance ultimately depends upon the Poolit’s selection and performance of underlying fund investments. The underlying funds’ investment activities involve the risks associated with private equity and venture capital investments generally. Those risks include adverse changes in national or international political or economic conditions, adverse local market conditions, the financial conditions of portfolio companies, changes in the availability or terms of financing, changes in interest rates, exchange rates, corporate tax rates and other operating expenses, environmental laws and regulations, and other governmental rules and fiscal policies, energy prices, changes in the relative popularity of certain industries or the availability of purchasers to acquire companies, and dependence on cash flow, as well as acts of God, uninsurable losses, war, terrorism, natural disasters and the like which are beyond our control. Unexpected volatility or lack of liquidity, such as the general market conditions that had prevailed in 2008, could impair our profitability or result in us suffering losses.
No. Poolit provides investment management services to investment funds only. It is critical that prospective investors evaluate a purchase of fund shares independently and with the assistance of financial and tax advisors where appropriate.
Poolit collaborates with its sub-adviser, Meketa Investment Group, to filter a large opportunity set down to 15-20 funds for consideration in what will ultimately be a portfolio of 7 – 10 funds. Funds in this larger “pipeline” that complete our diligence process are upgraded to “reserved” status when an allocation has been reserved to invest in said funds. Funds we list in our pipeline outside of the reserved status are generally considered to be top contenders for inclusion in the final portfolio, but these categories are fluid – i.e., funds may be“passed on” and leave the pipeline, and other “potential” funds may enter the pipeline.
Poolit Imagine Fund I (venture capital) - median historical return of managers is 35%.
- Greycroft Early Stage VII
- Greycroft Growth IV
- Bain Capital Ventures Co-Investment Fund III
- Coatue Ventures Fund III
- Fireworks Venture I (Lead Partner spent 10 years at Social Capital)
Poolit Horizon Fund I (private equity) - median historical return of managers is 22%
- CD&R Fund XII
- Kohlberg X
- Reverence Capital Partners Fund III
Most private equity and venture capital fund managers charge 2% management fees and 20% performance fees (a profit share after they hit a certain return level).
The median historical return of managers in the Imagine Fund after these fees, is 35%. The median historical return of managers in the Horizon Fund is 22%.
Past performance is not indicative of future results. That said, if investors had invested through Poolit in the above, assuming the fund returned at that median rate, investors would have still achieved great returns of 20%+ in the PE find and 33%+ in the VC fund.
Poolit has no minimums. We are on a broader mission to make these asset classes more accessible. Most funds in our portfolio have minimums of $1m+.
The average allocation to our funds is ~$100k.
Venture capital and private equity funds typically have a lifetime of 7+ years.
You can sell your position in Poolit to another accredited investor or qualified purchaser at any time by contacting our team.
After a one-year lock-up period, the Horizon Fund and Imagine Fund are able to repurchase shares on a quarterly basis at the discretion of its Board.
As Poolit receives money from underlying funds it will issue dividends to investors in those funds.
Poolit takes a 1% management fee to fund our operations which include significant legal and compliance cost given our funds are registered investment companies – which are deeply regulated by the SEC.
We pay our subadvisor, Meketa, a 0.375% fee for the work they do to help us conduct institutional grade diligence including activities like: on-site meetings and inspections, performing reference checks, reviewing and benchmarking investment tack records, and completing comprehensive DDQs. This list is not exhaustive.
The full diligence process takes ~2 months. Poolit has a dedicated 4 person team from our subadvisor and are able to tap into the broader resources of the 50+ person global team.
At this time all of the funds that we allocate to are only available to qualified purchasers. By pooling capital, Poolit becomes a qualified purchaser and allows accredited investors as well as qualified purchasers to invest in these underlying funds.
Poolit allocates money to a conviction-weighted diversified portfolio of managers across venture capital (through our Imagine Fund I) and private equity (through our Horizon Fund I).