Tax Efficient Credit For Concentrated Private Positions
Liquidity without the tax event.
Non-recourse credit for concentrated private equity.
Structural Parameters
Structures subject to position analysis and institutional review.
Conservative by design: we favor survivability over maximum advance rates.
Tax Outcomes First, Structure Around Them
No immediate sale, no immediate tax
We deliberately avoid immediate realization of gains; credit replaces selling.
Preserve QSBS and long term capital gains
Where applicable, our structures are designed to maintain your existing tax advantages while you access capital.
Align credit with exit, not with daily marks
Maturity is tied to IPO, M&A, tender, or approved secondary, not to mark to market margin calls.
Illustrative Example
- • Selling $1M → ~$370k+ tax due this year
- • Borrowing $1M at 9% → $90k/year interest, no immediate tax realization
For tax-sensitive holders, the tax bill is often a bigger cost than carry on a conservative credit
facility.
Actual tax outcomes depend on individual circumstances and jurisdiction; this is not tax advice.
Preservation Through Structure
The tax code discourages diversification while rewarding concentration. Our framework enables portfolio optimization without triggering the immediate tax consequences of traditional liquidation.
Capital Efficiency
Selling equity creates 37-45% immediate tax liability and gives up QSBS eligibility, AMT basis step-ups, and estate planning flexibility. Our structure provides access to 10% of position value while preserving full ownership and upside participation.
Because long-term capital gains taxes can exceed 30–40%, while conservative loan carry may be single digits, carefully structured credit can be cheaper than selling from a tax perspective.
Risk Architecture
Non-recourse provisions limit exposure to pledged assets. No personal liability extends beyond the specified collateral. This architecture enables portfolio diversification while maintaining concentrated position economics.
Non-recourse structures contain risk to the pledged shares. There is no personal guarantee. We design documentation and covenants so that the focus is on return of capital first, then return on capital.
Implementation
Portfolio optimization structures are designed for positions where traditional diversification would trigger substantial tax inefficiencies. Each structure is tailored to specific holdings, tax situations, and liquidity objectives.
Analysis
Review of equity structure, vesting status, tax basis,
and qualification timelines.
Many positions do not meet our underwriting standards. We prefer no trade to a structure that does
not meet our risk criteria.
Structuring
Sizing conservative loan-to-value ratios (typically ~10%) that preserve robust downside protection while meeting your liquidity objectives.
Execution
Documentation and implementation typically completed
within 10-15 business days.
We typically coordinate with your legal and tax advisors to ensure structure, documentation, and tax
treatment align.
Representative Portfolio Companies
Led by Operators, Not Bankers
Bedrock Bridge Capital is led by investors with deep operational experience in private technology. We view credit not as a transaction, but as a structural tool for long-term hold strategies.
Shaunak S. Mali – Managing Partner
Shaunak oversees credit selection and risk management at Bedrock. Having worked inside late-stage companies like Box, Optimizely, and Checkr, and co-founded KarmaCheck, he understands the unique constraints of the builder class. His approach favors conservative advance rates and tax-aware liquidity—consistent with the philosophy outlined in the Bedrock Perspectives.
Who We Serve
Founders & Senior Operators
Early employees, founders, and senior leaders at category defining private technology companies who hold several million (typically $3–25M+) of equity in a single name.
You want to fund life, housing, and diversification without being forced to sell into a future IPO or M&A event. We provide measured liquidity without selling, so you keep your upside and protect your tax position.
Investors & Family Offices
Private investors and family offices with meaningful positions (often $10–50M+ across several names) where tax-efficient diversification is the primary objective.
Your priority is tax efficient portfolio architecture, not raw leverage. Bedrock structures low LTV, non recourse credit facilities against one name or a curated basket, so you can unlock capital while preserving tax advantages and governance optics.
Our focus is established private technology franchises, rather than early stage or highly levered strategies. Our work is primarily with U.S. tax-resident holders of established private technology franchises.
Inquiries
For portfolio optimization of concentrated private equity positions.
Initial consultations focus on position analysis, tax implications, and structural alternatives. All discussions are confidential.
Prefer email? Contact us at inquiries@bedrockbridgecapital.com. Initial details can be brief.