AxiaFunder Switches to Limited Partnership Investment Model

Following its soft launch, AxiaFunder plans to expand its liquidity by launching a secondary market next week. Currently operating an equity model, the funder plans to switch to a limited partnership model over the coming weeks.

P2P Finance News details that the main difference here will be that investors will buy partnership shares, making them limited partners. Cormac Leech, founder and Chief Executive of AxiaFunder, explains that it’s more tax-efficient for the company, since investors are taxed on earnings—while the company does not pay the tax.

This switch may keep some investors out, as Leech stated that the threshold to qualify will be higher than under the equity investment model. Only time will tell how this may impact LP participation in AxiaFunder. 

Following its soft launch, AxiaFunder plans to expand its liquidity by launching a secondary market next week. Currently operating an equity model, the funder plans to switch to a limited partnership model over the coming weeks.

P2P Finance News details that the main difference here will be that investors will buy partnership shares, making them limited partners. Cormac Leech, founder and Chief Executive of AxiaFunder, explains that it’s more tax-efficient for the company, since investors are taxed on earnings—while the company does not pay the tax.

This switch may keep some investors out, as Leech stated that the threshold to qualify will be higher than under the equity investment model. Only time will tell how this may impact LP participation in AxiaFunder.