You will see the following categories when browsing investment opportunities
Product Type: Gridline offers multiple product types for investment
- Thematic Portfolio Fund: a Gridline fund that invests into a basket of funds centered around a certain theme.
- Direct Funds: a Gridline fund that invests directly into one other fund.
Asset Class: The asset class that the Gridline product invests in. This can be any alternative asset, including venture capital, private equity, crypto, real assets, and more.
Stage: Relating to Venture Capital and Private Equity, stage represents the developmental funding lifecycle of a company. The first three stages (Seed, Series A, Series B) represent Early Stage, and the following stages (Series C, Series D, Series E, +) represent Late Stage. Gridline products will target underlying fund managers that invest in Early, Late, or Crossover (invests in both).
Fund History: If the underlying fund manager that Gridline sources for our investment product has a history of 4 or more funds launched they will be labeled as "established." If they are on their first 3 funds they will be labeled as "emerging."
Fund Size: Fund size describes the total dollar amount that a particular fund is raising from all potential investors. While Gridline is only representing some portion of that, it's an important metric to track because it correlates to the size and types of investments an underlying fund might deploy. Larger total fund size needs to put more money to work, and make more investments that are usually larger in size.
Performance: There are many standardized metrics commonly used for measuring performance in alternative investing. These metrics can differ greatly based on asset class as well. Gridline utilizes the below metrics to present fund performance:
- NET Multiple on Invested Capital (MOIC): Also referred to as Equity Multiple, MOIC describes the value of an investment as compared to its initial cost. It is used to measure how much return a particular investment has generated.
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MOIC = Realized + Unrealized Value / Initial Cost
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- Net Asset Value (NAV): The NAV represents the current value of the investment, calculated by taking the value of its total assets minus its liabilities
- NAV = (Assets - Liabilities) / Total number of outstanding shares
- NET Internal Rate of Return (IRR): The Net IRR is a way of measuring the performance of an investment based on its discounted future cash flows, less of fees, costs, carried interest, and other deductions.
- If MOIC is simply how much, IRR is how much and when.
Qualification: Refers to the required accreditation qualification needed to participate in an investment product. Gridline investors can be "Accredited Investors" or "Qualified Purchasers". In some cases, products will only be available to Qualified Purchasers.