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Investing

What are "alternative investments"?

Alternative investments are supplemental strategies to traditional public market investments like stocks, bonds, and cash. They include private equity, venture capital, hedge funds, real estate, private credit, cryptocurrencies, and more.

Who can invest?

Currently Poolit is available onlyfor accredited investors or qualified purchasers. We are actively working to expand access to everyone. [Please sign our petition].

What if I'm not an accredited investor?

Poolit's vision is for alternative investments to be available to every individual. While Poolit is prohibited by regulators from admitting unaccredited investors onto our platform today, we are working to generate regulatory change and to create new products that may permit unaccredited investors to partake in opportunities on our platform. Please sign up for waitlist, and we will keep you updated on our progress.

How do I become an accredited investor?

To be an accredited investor, you must be a person who satisfies one of the following: has an annual income of at least $200,000, or $300,000 if combined with a spouse’s income (this level of income should be sustained from year to year); is a “knowledgeable employee” of certain investment funds or holds a valid Series 7, 65 or 82 license; or has a net worth of $1 million or more, either individually or together with a spouse, but excluding the value of a primary residence.

Do I need to be a qualified purchaser?

No - Poolit expands access to alternatives by satisfying the qualified purchaser requirement at the Pool level.

What is the minimum investment?

A first for private market investments, Poolit lets you start investing with as little as $1.

What type of investment opportunity does Poolit offer?

Poolit offers the opportunity to invest in Pools, which are investment vehicles that allocate capital to funds that pursue alternative investment strategies.

What is a "pool"?

A Pool is a fund of funds - it is a portfolio of investment funds selected for you by Poolit's investment team.

Is there a secondary market / tenders?

Poolit offers two methods for exiting your investment in a Pool. The first is tender offers, where Poolit may repurchase some of your shares on a quarterly basis to the extent the funds have liquidity. The second is a secondary market where you can sell your shares to other investors on the Poolit app.

How is the Net Asset (NAV) value of a fund determined?

NAVs reflect the value of an investor’s stake in a Pool. Fund managers report NAV to their investors quarterly according to strict valuation guidelines. One part of our stringent diligence process is ensuring these guidelines meet institutional-grade standards. The Pool’s independent administrator aggregates the underlying manager’s reports and calculates the overall NAV for the Pool. Poolit verifies and certifies this according to our valuation policy which can be found in our offering documents.

What is the selection process for funds on Poolit

We partner with a multi-trillion dollar investment advisory firm to source and perform rigorous due diligence.

How available (or "liquid") is my money if I need it?

Members that invest in a Pool should carefully read the offering documents associated with that Pool to understand the availability of any funds they invest in that Pool. Generally, members should understand that the opportunities on Poolit are designed to be long duration and that liquidity is constrained relative to more common financial accounts like savings accounts and brokerage accounts. Poolit offers two methods for exiting your investment in a Pool. The first is tender offers, where Poolit may repurchase some of your shares on a quarterly basis to the extent the funds have liquidity. The second is a secondary market where you can sell your shares to other investors on the Poolit app.

How long is my money invested for?

When you invest in Poolit, you purchase shares of a closed-end fund. You may sell your shares to a secondary market participant at any time. After a one-year lock-up period, the Pool is able to repurchase shares on a quarterly basis at the discretion of its Board. Pools will also issue dividends which could result in the return of your original investment over time.

Legal

What are the risks involved with investing in Poolit’s Pools?

Alternative assets such as venture capital and private equity are inherently speculative and involve a high degree of risk. Investors who can't afford to lose their entire investment should not invest. The value of an investment may increase or decrease and investors may not be able to retrieve their original investment. Past performance does not guarantee future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Prospective investors should carefully consider the risk warnings and disclosures for their respective Pool.

How does Poolit make its money?

Poolit primarily makes money by charging a management fee in exchange for providing its services to members who have invested in a Pool. Poolit never charges sales loads to users - which would hamper their returns. We also never charge marketing fees to fund managers in our Pools - a standard industry practice which often generates conflicts of interest.

What is your "fund of fund" structure all about?

A fund of funds is an investment vehicle that allocates its capital to funds managed by professional investors who then redeploy that capital directly into businesses and other securities. This structure provides the diversification which is the tools many institutions like endowments use to outperform. For any given dollar a member invests in a Pool they are instantly diversified across all of the underlying funds in that Pool.

Does Poolit charge me fees? How much? When?

Yes, Poolit charges a management fee of 1.375% per year. The management fee is charged to members on a quarterly basis.