An "exit" is the event that converts your illiquid private investment into cash or publicly tradable shares. It's the end of the investment journey, and the moment you realise your returns (or losses).
The three main exit types are:
IPO (Initial Public Offering): The company lists its shares on a public stock exchange (e.g., NYSE, NASDAQ, LSE).
Your SPV shares convert to publicly traded shares
You can sell on the open market, but there's usually a 90–180 day "lock-up period" where you must hold
After the lock-up, you can sell freely
Timeline: typically the longest exit path (5–10 years from investment)
Acquisition: Another company buys the company you invested in.
You receive cash, stock in the acquiring company, or a mix
Returns flow through the SPV to investors proportionally
Timeline: can happen at any point (some acquisitions occur within 1–3 years)
Secondary sale: You sell your SPV interest to another private buyer before the company exits.
Buyer and price are negotiated directly
Subject to ROFR and company approval
You may sell at a discount or premium depending on demand
Timeline: you initiate, but the process takes 30–90 days
What Wealt does during an exit?
Sends you a notification when the exit is announced
Processes distributions through the SPV
Provides updated documentation in your Vault
Updates your portfolio valuation