Tax Efficient Credit For Concentrated Private Positions
We structure low LTV, non-recourse credit lines for tax-sensitive founders, early employees, and investors in exceptional late-stage private technology companies, repaid at IPO, M&A, tenders, or approved secondary events.
Request DiscussionStructural 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
Stewardship and Alignment
Bedrock Bridge Capital is led by investors with experience in credit, secondary markets, and private technology, having structured and overseen transactions across late-stage technology names. We emphasize conservative advance rates, rigorous risk review, and long-term relationships over transaction volume.
Shaunak S. Mali – Managing Partner
Shaunak S. Mali is the Managing Partner of Bedrock Bridge Capital, overseeing credit selection and risk management. He has worked at late-stage technology companies in roles at Box, Optimizely, and Checkr, and co-founded KarmaCheck and Permian Capital Management. His approach favors conservative advance rates, non-recourse structures, and tax-aware liquidity for concentrated holders of private stock. He is known for saying no to structures that do not meet our underwriting standards, focusing on capital preservation, and building long-term relationships with a small group of clients.
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.