The decision to distribute stock in-kind (i.e. as shares) or to liquidate at the fund/SPV level and distribute cash proceeds is made on a case-by-case basis.
There is no single deciding criteria, but common factors include:
- The tax or other economic value to fund investors of receiving shares in-kind.
- The fund lead's recommendation as to the best liquidation strategy for the fund.
- The quantity and value of shares being distributed.
- The feasibility of an in-kind distribution based on the exchange and listing type.
When a fund or SPV offers the option to receive shares in-kind, you will receive a notification at the email address associated with the investor account that made the fund or SPV investment.
In order to receive shares, you'll need to make an affirmative election and provide information for a brokerage account that is able to receive the shares in the name of the investment account under which you invested.