Srikanth Narayan, the CEO of Cache, recently founded The Cache Exchange Fund. This initiative is specifically designed to aid individuals who possess stocks in a single company, a common occurrence among Silicon Valley employees. The Fund offers guidance and support to these stockholders, aiming to simplify the complex world of company stocks.
The function of Exchange Funds involves collaborating in financing through communal pools. The unique aspect of these funds is that contributors are given the option to either withdraw some of their stocks or maintain their investment after seven years. Tax is not applicable on the initial contributions during redemption, and the cost basis remains the same as the first contributed concentrated stock position.
Exchange Funds usually require a minimum contribution of $1 million. However, Cache’s version allows for a more accessible investment of $100,000. The Fund’s structure operates around the Nasdaq 100 benchmark, offering a monthly close and the availability of Net Asset Value (NAV).
The primary Exchange Fund from Cache is made up of a diversified stock portfolio from over 50 companies, with an average investment of around $650,000. The corporation reportedly has stock reservations valued at more than $900 million from about 1,000 potential investors across 150 different companies. Moreover, Cache regularly collaborates with numerous wealth management advisors.
Adero Partners, a California-based wealth management firm, strongly supports Cache. Aaron White, Adero’s Chief Growth Officer, appreciated Cache’s innovative and effective model despite initial misgivings. He further highlighted the alignment between Cache’s clarity and transparency and Adero’s philosophy of client service.
The idea of the Fund was conceived when Narayan, a former Uber employee, pondered diversification options for his Uber stocks. He therefore created the Fund based on his personal experience, aiming to guide others in similar situations through their diversity investments.
