Investment of $12.5 million awarded in Series A round to Cache, scaling their platform for tax-optimized portfolio diversification.
Cache, a groundbreaking financial services company, is making waves in the industry by offering a unique platform designed to help investors manage concentrated stock holdings more effectively. This innovative solution focuses on tax-efficient strategies, setting it apart from traditional wealth management firms.
Tax Efficiency at the Forefront
One of the key advantages of Cache's platform is its focus on tax efficiency. By employing derivative structures, hedging strategies, and structured transactions, Cache enables clients to defer or mitigate capital gains taxes that would otherwise be incurred from selling large positions outright.
Targeting Concentrated Stock Positions
Unlike traditional wealth management firms that typically manage broadly diversified portfolios, Cache targets clients with substantial holdings in single stocks. These clients often include company founders, employees with stock options, or insiders who find themselves with a significant portion of their net worth tied up in a single company's stock.
Innovative Financial Instruments and Technology
Cache's approach is underpinned by the use of innovative financial instruments and technology. The company leverages cutting-edge technology to provide a streamlined and transparent process for executing these strategies, a departure from traditional bespoke advisory models.
Growth and Expansion
Cache has experienced remarkable growth since its launch, surpassing $625 million in total assets just over a year ago and approaching profitability. The platform has attracted a diverse client base, including public company executives, early startup employees, long-term investors, and over 400 registered wealth management firms.
Recently, Cache has expanded its product suite beyond its original Nasdaq-100 focused exchange fund to offer S&P 500 and S&P 500 Growth benchmarked exchange funds. This move is in line with the company's mission to become the go-to platform for managing concentrated stock positions across all investor types.
Notable Personnel
Cache's team is composed of seasoned finance professionals, including Aaron White, former Chief Growth Officer at Adero Partners, who now leads Investor Solutions at Cache. The platform is also backed by industry veterans such as Peter Crawford (CFO at Schwab) and Tim Kochis, who pioneered the RIA movement.
Paul Smith, who led design at Opendoor and Uber, heads the product design team at Cache, ensuring a user-friendly experience for clients.
Funding and Future Plans
Cache has secured $12.5 million in Series A funding, led by Bill Trenchard at First Round Capital, with participation from solo investors across technology and finance. The company plans to use this funding to further expand its mission and enhance its platform.
Starting July 1st, new S&P 500 funds will begin investor onboarding, offering even more opportunities for investors to diversify their portfolios. Cache charges competitive fees of 0.4-0.95% versus the 1.5-2.25% typical of legacy providers, making its services more accessible to a wider range of clients.
For more detailed company background and growth data, we recommend visiting Cache’s official website or recent financial news sources focused on wealth management innovation.
- To attract more clients and adhere to regulatory compliance, Cache is planning to leverage its recent funding to implement advanced technology, expanding its product suite beyond Nasdaq-100 to include S&P 500 and S&P 500 Growth benchmarked exchange funds.
- In an effort to set itself apart from traditional wealth management firms, Cache focuses on tax efficiency, employing derivative structures, hedging strategies, and structured transactions to help clients manage concentrated stock holdings, thereby minimizing capital gains taxes.
