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Frequently Asked Questions

Everything you need to know about private market investing with ZiliX Capital.

⚠️ Critical: Understand Before Investing

Private market investments are illiquid with typical holding periods of 5-10 years. You cannot sell your position until an exit event occurs. Only invest capital you can afford to lock up for the long term.

Investment Timeline & Liquidity

How long will my capital be locked up?

Typical holding periods for private market investments are 5-10 years. Some investments may exit sooner (3-4 years), while others may take longer (10+ years). You should only invest capital you will not need access to for at least 5 years.

Can I sell my shares early if I need the money?

No. Private market investments are illiquid. There is no public market to sell your shares. You cannot access your capital until an exit event occurs (IPO, acquisition, or secondary sale). Secondary markets for private shares are limited, restricted, and not guaranteed.

When do I get my money back?

You receive your capital back (plus any returns) only when the company exits through:

  • Initial Public Offering (IPO)
  • Acquisition by another company
  • Secondary sale arranged by the SPV
  • Company buyback (rare)

Exit timing is not guaranteed and depends entirely on market conditions and company performance.

What is the typical timeline from investment to exit?

Here's a realistic timeline for a typical private market investment:

  • Year 0-2: Early growth phase, no liquidity
  • Year 3-5: Company matures, potential for exit discussions
  • Year 5-7: Most likely exit window (IPO or acquisition)
  • Year 7-10+: Extended hold if market conditions unfavorable

Important: Some investments never exit, resulting in total loss of capital.

Risks & Returns

What are the risks?

Private market investments carry significant risks:

  • Total loss of capital - Companies can fail entirely
  • Illiquidity - Cannot sell when you want
  • No guaranteed returns - Past performance doesn't predict future
  • Long holding periods - 5-10+ years typical
  • Valuation uncertainty - No daily market pricing
  • Concentration risk - Small number of companies
  • Regulatory changes - Tax and securities law changes

Can I lose all my money?

Yes. If the company fails, goes bankrupt, or never achieves an exit, you can lose 100% of your invested capital. Only invest what you can afford to lose completely.

What returns can I expect?

We do not and cannot guarantee any returns. Private market returns are highly variable:

  • Some investments return 0% (total loss)
  • Some investments return 2-5x (good outcome)
  • Rare investments return 10x+ (exceptional outcome)

Past performance of other investments is not indicative of future results. Each investment is unique.

Eligibility & Access

Who can invest with ZiliX Capital?

Only accredited investors (US), qualified investors (EU), or equivalent status in other jurisdictions. You must be able to verify your status with documentation.

What is an accredited investor?

United States: Income of $200K+ (individual) or $300K+ (joint) for past 2 years, OR net worth over $1M (excluding primary residence).

European Union: Professional investor or qualified investor under MiFID II.

Canada: Income of CAD $200K+ or financial assets of CAD $1M+.

Requirements vary by jurisdiction. You are responsible for determining your eligibility.

How do I verify my accredited investor status?

After approval, you'll need to provide documentation such as:

  • Tax returns (past 2 years)
  • W-2 forms
  • Bank or brokerage statements
  • CPA verification letter

Is membership guaranteed after applying?

No. Submission of an access request does not guarantee approval. ZiliX Capital reserves the right to accept or decline applications at our discretion.

Structure & Process

How does the SPV structure work?

Each investment opportunity is structured through a dedicated Special Purpose Vehicle (SPV). Members invest into the SPV, which then invests in the underlying company. This consolidates legal documentation and reporting.

What is the minimum investment?

Minimum investments typically range from €5,000 to €25,000 per opportunity, depending on the specific deal structure.

Do I have to invest in every opportunity?

No. Membership provides access to opportunities, but you choose which deals (if any) to participate in. There is no obligation to invest.

How often will new opportunities be available?

We curate a limited number of high-quality opportunities. Typically 2-6 opportunities per year, depending on market conditions and deal availability.

What happens after I express interest in a deal?

You receive detailed documentation including the offering memorandum, risk factors, and subscription agreement. You then have time to review, conduct due diligence, and decide whether to commit capital.

Fees & Costs

Are there any membership fees?

No. Membership is free. You only pay fees on capital you actually invest in deals.

What fees do I pay on investments?

Management Fee: 2% annually on invested capital, charged each year until exit.

Carried Interest: 20% of profits above your initial investment, charged only at exit.

See our Fees page for detailed examples.

Are there any other costs?

No. There are no setup fees, transaction fees, administrative fees, or exit fees. The 2% annual management fee and 20% carried interest are the only fees charged.

Tax & Reporting

What tax documents will I receive?

You will receive annual K-1 forms (US investors) or equivalent tax documentation for your jurisdiction. These report your share of SPV income, losses, and distributions.

How often will I receive updates?

Quarterly performance updates and annual financial statements for each SPV you're invested in.

Should I consult a tax advisor?

Yes. Private market investments can have complex tax implications. We strongly recommend consulting with a tax advisor in your jurisdiction before investing.

Still Have Questions?

Request access to speak with our team

We're happy to answer additional questions about private market investing, our process, and eligibility requirements.

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