Redeeming ACAP Strategic Fund Shares (XCAPX, XCWPX)

Since February 2021, we've fielded over a hundred inquiries from RIAs on how to sell their clients' shares of the ACAP Strategic Fund (XCAPX, XCWPX), and finally decided to organize our responses into an article for your convenience.

Regardless, although we have no affiliation with the ACAP Strategic Fund, we do have top-ranking search slots for them, and they don't have a fund website. So hopefully this article provides you the information you're looking for.

Like any interval fund, the ACAP Strategic Fund is required to offer to repurchase a certain percentage of outstanding shares at regular intervals. Hence, "interval fund." ACAP does this tender offer every quarter.

The manager SilverBay is operated by Alkeon, and we assume that some kind of proactive communication is happening behind the Alkeon investor portal. Not sure. What we do know is that ACAP is required to file every "notification of periodic repurchase offer" on their SEC-hosted Edgar page, and it'll tell you the due date for opt-in submissions, the date the NAV will be struck for your clients' redemptions, and the date they can expect to receive their funds.

Typically you'd just need to submit the redemption request to the appropriate address by the deadline, but there are some wrinkles in how this fund accepts redemptions. ACAP only allows investors to buy shares through an intermediary, and if you aren't on the shortlist of RIAs that can buy ACAP shares for your client, you probably aren't getting the repurchase offer notifications or clarity on how to submit them.

In that case we recommend calling SilverBay's parent company Alkeon directly at (212) 716-6840, or emailing alkeoninfo@alkeoncapital.com to make sure you're set up and don't miss a deadline.

It's also worth noting that if a redemption is oversubscribed, tender offer requests will be fulfilled on a pro-rata basis. You can always try again next quarter.

Call SilverBay's parent company Alkeon directly at (212) 716-6840, or email alkeoninfo@alkeoncapital.com to ask for that information. They don't include it in their shareholder reports.

Best of luck to you. This process might feel cumbersome, but most interval funds leverage the fund wrapper appropriately; that is, offering retail investors access to private market assets that generate outsized yield. Feel free to message us at alpha@intervalfunds.org if you're interested in learning more.