A Single-Asset Continuation Vehicle (SACV) is a private equity secondary transaction structure where a general partner sells a specific asset from an existing fund to a newly formed vehicle, often involving both existing and new investors. In the crypto space, this concept could adapt to structures that enable the long-term holding and management of a single, high-value digital asset or a specific protocol’s governance token beyond a fund’s initial term.
Mechanism
The mechanism typically involves the original fund offering its limited partners the option to either cash out their interest in the specific asset or roll their interest into the new continuation vehicle. The new vehicle then acquires the asset, providing liquidity to exiting investors and extending the investment horizon for those who roll over. For crypto, this might involve token transfers, smart contract reconfigurations, or legal agreements facilitating the transfer and ongoing management of a particular digital asset.
Methodology
The methodology aims to provide liquidity to investors while allowing the general partner to continue managing a performing asset for a longer duration. In crypto, this could apply to a venture fund holding a significant position in a promising blockchain project’s native token or a rare NFT collection. It provides an exit option for some investors and continued exposure for others, potentially optimizing capital gains over a longer investment horizon, especially for assets with delayed liquidity or substantial future growth potential.
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