I am assuming any sale of a private fund interest would be at a significant discount. I would probably do this just to rid myself of the nonsense, but I don’t know of any good way to solicit buyers (if there even are any buyers). The funds were like “We’ll let you know if anyone shows up” sort of thing, which is useless.
Still worth enquiring. There probably won’t be any buyers now because the GV just became worthless.
My fund gave me the same answer. I would have been thrilled to get out at a 30% discount, but expect even that’s impossible at this point.
If @tkrunning is game, NomadGate could be an informal clearinghouse for matching up buyers and sellers of closed-ended fund units. There may be synergy between folks who want to liquidate, and folks who decide to stick it out. It can’t hurt to add additional liquidity and transparency to such endeavors.
However, I’m not a financial professional, and I don’t know whether there are onerous regulations about discussing such matters.
2 Likes
Like a PT GV version of “Sell my timeshare?” 
PS. there are people paying other people to take Florida timeshares off their hands. Hope PT doesn’t come to that!
2 Likes
I like the idea. If someone wanna quit and another wanna take advantage of the discounts why not? This can follow with a small donation to NomadGate for helping the transaction to close.
1 Like
Interesting idea. Assuming we can do so legally and without too much red tape I think we could make that work.
Though one challenge would be that new GV investors would probably want to invest in a fund with enough time left to take them at least to PR qualification.
I’d like to add here - people who want to sell their private fund shares (which usually have around 7-year lifespans) have probably already held them for a decent amount of time. If the target is new GV enthusiasts, it’s going to be a futile exercise since the timelines won’t match up. Second thing - if shares are bought at a discount, the bank won’t be able to provide the foreign fund transfer certificate, which is key for initial GV applications. So the target audience needs to be people with clear financial means to buy at face value-discount offered.
On the legality question - this one’s super simple. Anyone can sell their assets, including fund shares, at whatever price they want, as long as the fund manager approves it. I don’t see any issue here.
1 Like
The regulatory risk wouldn’t apply to the people selling or buying the assets, I think, but potentially to Nomad Gate. I am guessing we could structure it in a way to not be covered by the MiFID trading venue definition, for example, but nonetheless it’s something we’d need to think through.
It’s unlikely that this would be useful to new ARI investors. I foresee the use case being the resale of units by investors who want to liquidate early, at market-clearing prices, to other investors who are already going through the tax hassles. I’m seeing a lot of chatter from discouraged ARI investors who want to take their losses and move on.
The implementation could be as easy as a new forum thread: “ARI investors liquidating closed-end fund shares”. The main value would be connecting sellers with buyers, who could negotiate deals privately.
2 Likes
Agreed with this. I assume it’s a very small subset of ARI investors who would actually want to buy secondary fund interests. That being said, to @tkrunning’s point, I assume all of these funds are going to have to figure out how to restructure things to allow people dropping out of the program to get their money back on the original time frame, while also setting up new vehicles to accommodate people who are going to stick it out for the longer period. Will be interesting to see how they handle that.
The buyer would have to pay the full amount with a separate legal agreement with the seller to get a refund equivalent to the discount. The shares would then transfer ownership at the original face value.
Which incidentally has changed from 350 to 500K so will take more than one seller to band together to make up the difference. Starts to get pretty complex.
That way lies trouble. Caribbean CBIs have revoked (already granted!) citizenships over such schemes.
1 Like
I don’t think that a closed-ended fund approaching maturity would be suitable as an investment for a new applicant. The fund would liquidate long before the investor reached the 5 year mark for permanent residency, other administrative complications notwithstanding.
I foresee the value of this watering hole would be to connect investors who are abandoning the program with people willing to buy them out. I doubt that fund managers will offer competitive buyout offers, if any.
Agreed, I think this path is fraught with headaches and possible danger
I went ahead and created a thread in the The Private Lounge.
1 Like
Let’s hope that fair winds blow and get us all across the citizenship finish line, but this may be a helpful service for folks who decide it’s necessary to abandon ship.
1 Like
A few years back, an OK fund I am invested in offered someone else’s shares to existing shareholders. The person was selling at a 10% discount. I offered 25%, but someone accepted the 10%. I know it would be easier to transfer to an existing shareholder, but I would expect them to facilitate either way.
Thank you @tkrunning for setting up the exchange.
Following - quite interested in the marketplace idea.
I might be interested in purchasing shares, depending on fund, discount and potential upside.
I already have PGV investments and am happy with them regardless of the PGV program foibles(to be polite), so that is not a consideration.
We have one open fund we can cash out of that’s done well, might be interested in selling the other one, Fortitude that matures in Dec 2030 that we put about 200,000 into. Honestly not that interested in selling at a big discount and will possibly hold unless we get a reasonable offer. An initial meeting with them indicated it would be possible but they have first right of refusal etc. Just waiting to make a final decision as to whether drop out with one biomteric appointment set for March. Will probably make that decision later next month.