Question 1

What is PEP?

Accepted Answer

PEP — or Prepublic Equity Partners — gives individual investors access to some of the world’s most sought-after private companies through the secondary market. Think — names like Anthropic, SpaceX, Revolut and Stripe. Just as Alumni Ventures democratized early-stage venture, PEP is doing the same for late-stage secondaries, making it easier for accredited investors to participate in the value creation that happens before IPO.

Question 2

How is investing in secondaries different from investing in primary shares?

Accepted Answer

When you invest in a primary round, you’re buying newly issued shares directly from the company, usually as part of a fundraising event. The terms are standardized, disclosures are more complete, and you’re providing new capital for growth.
In a secondary transaction, you’re buying existing shares from early investors, employees, or other holders. That means: 
Shares may trade at a discount (especially common vs. preferred), and terms vary deal by deal; 
You may get less direct company disclosure, so value assessment relies more on networks, trusted relationships, and disciplined diligence from other sources, and 
Access is critical as companies that aren’t raising often may still allow transfers, thus giving investors entry into otherwise closed opportunities.
In short, primaries fund the company. Secondaries give investors a path into companies later in their lifecycle, — often at attractive entry points, but with added complexity.

Question 3

How does PEP intend to find these secondary opportunities?

Accepted Answer

We’ll use every tool available to access the right companies — from PEP’s network of founders, co-investors, and partners — as well as from secondary marketplaces and trusted brokers. In some cases, we may participate through other funds or SPVs that already hold the shares we want exposure to.

Each path comes with its own costs and considerations such as higher transaction expenses, less direct visibility into counterparties, etc.. Our job is to weigh those trade-offs carefully so that, regardless of the sourcing route, our investors get the best access we can deliver to companies that have historically been out of reach.

Question 4

What types of companies could you consider investing in?

Accepted Answer

Our target is established private companies with scale, staying power, and room to grow before IPO. In practice, that means companies generally valued at $2B or above, at a stage where they have more stability in operations, revenues and market position than earlier-stage startups. Geographically, our focus will be on the U.S. and Europe. From a sector standpoint, we expect many of the companies will be in technology, but we are not limited to one niche. We see attractive opportunities across the late-stage venture landscape, including in fintech, defense, industrials, health care and consumer.

Question 5

What should I expect in terms of exits?

Accepted Answer

In venture, an exit usually entails a company going public, being acquired, or winding down. Additionally, our late-stage secondaries shares can be resold in a further secondary transaction. So even if a company isn’t yet IPO-ready, liquidity can sometimes be created by selling our stake to another institutional buyer.

That said, strong private companies often choose to stay private longer. In those cases, our path to liquidity may not be an IPO or acquisition but a secondary sale. Secondary exits can come with different pricing dynamics, terms, or costs than a public offering, and that can affect outcomes. Our job is to navigate those situations carefully — to find the right entry point and the right exit path — so our investors participate in value creation even when timelines shift.

Of course, outcomes vary widely. Timing and magnitude are unpredictable, and the trade-off for that uncertainty is the potential for outsized gains.

Question 6

What’s your approach to structure and liquidity?

Accepted Answer

PEP is a 6-year, closed-end fund, with the option for two additional one-year extensions. That’s a shorter horizon than traditional venture funds, which often run 10 years. That shorter duration is — by design, since we’re investing in later-stage companies that are closer to exit.

We keep it simple: one upfront capital call, no surprises later. Governance is built for trust, with an independent board and investment committee overseeing decisions.

Question 7

Can I make a withdrawal if I wish?

Accepted Answer

No, — our funds are intentionally illiquid. In PEP’s case, the hold period is 6 years, whereas most venture funds have a 10-year hold. That design gives us the freedom to invest with patience, without worrying about short-term redemptions. Investors receive their capital back through distributions when portfolio companies exit — typically via acquisition, IPO, or secondary sale. That means your timeline is tied to the success of the companies we back, not to arbitrary withdrawal windows.

Question 8

Will the fund “recycle” capital?

Accepted Answer

We do reserve the right to “recycle” capital, taking gains from an early exit and putting that money back to work in new opportunities, instead of distributing it right away. PEP has the option — though not the obligation — to do this for up to three years after the Fund’s final close.
The benefit: more shots on goal with the same dollars, which can boost overall returns. The trade-off: those gains aren’t distributed immediately, and while reinvested, they carry the same risks and upside potential as any other investment in the Fund.

Question 9

What are the fees?

Accepted Answer

We keep it straightforward. Each investor pays a one-time management fee equal to 1.5% per year over the fund’s six-year life. That fee is collected up front, so there are no surprise charges or extra capital calls down the road. If the fund extends past six years, there are no additional management fees.

The fund will also cover its own startup and operating costs (like legal and administrative expenses). But those are capped at 0.50% of assets per year with a 1-time 200k setup expense and accrued against returns, meaning there are no additional capital calls. 
Finally, PEP earns a 20% performance fee — but only after investors have first received back all of their committed capital, including management fees and expenses. That way, we win when you win.

Question 10

What are PEP’s competitive advantages?

Accepted Answer

PEP leverages proprietary data, AI and networks to research, monitor and access sought after assets. Our edge comes from depth and context:
Proprietary Data: A database of 10,000+ research memos from prior diligence processes, which we use to train our models and benchmark opportunities.
Cap Table Intelligence: Investors in our network are on the cap tables of ~99% of our target companies, so we will get to see deal flow and transaction dynamics early.
Community Access: Our network touches ~80% of target companies, providing us with insider perspectives from employees, investors, and industry experts.
All these information points flow into our AI models to surface patterns and opportunities. Our team then validates leads through trusted relationships and hands-on diligence. The outcome is more efficient sourcing, higher-confidence pricing, and better positioning in competitive secondary markets.

Question 11

How can I invest into PEP’s Fund 2

Accepted Answer

PEP is gathering names to engage with for future investment opportunities. If you would like to learn more about PEP’s expected Fund 2 offering,please join our wait list. The wait list is open to Individual Accredited Investors and Institutional Accredited Investors who are also Qualified Clients, Qualified Purchasers, and Qualified Institutional Buyers

Question 12

What is the background and expertise of the investment team?

Accepted Answer

PEP's investment strategy is executed by a dedicated team with deep, specialized investing and operating experience. Our professionals have decades of combined expertise across the private and public markets, covering the full lifecycle of high-growth companies, including integrated research and deal sourcing, comprehensive valuation and diligence practices, and navigating various exit scenarios.

Question 13

How does PEP’s proprietary AI and data directly impact investment decisions?

Accepted Answer

Our AI models are not a replacement for human diligence; they serve as a powerful tool to enhance sourcing efficiency and conviction. Specifically, our technology helps filter and prioritize opportunities, so we can become a nimble partner-of-choice on the secondary market. Our internal multi-agent workflows process vast amounts of unstructured data to quickly surface attractive companies to target while also validating opportunistic leads, allowing our investment team to focus hands-on diligence on the highest-confidence opportunities.

Question 14

What are the primary risks associated with investing in PEP?

Accepted Answer

Investing in private equity, particularly in the secondary market, involves substantial risks including:
Illiquidity and Long-Term Hold: PEP Fund I is a closed-end fund with a target duration of six years (plus two optional one-year extensions). Investors have no right to withdraw their capital, and liquidity is only realized upon portfolio company exits (IPO, acquisition, or secondary sale).
Valuation Uncertainty: Secondary transactions involve less direct company disclosure than primary rounds. While PEP employs a disciplined valuation process using third-party data and its Valuation Committee, the value of private assets is inherently subjective and may be adjusted.
Reliance on Key Personnel: The success of the Fund depends significantly on the skill, judgment, and continued service of PEP's CEO, Head of Investment Research, and other key investment professionals.
Sector Concentration: While not limited to a single niche, a significant portion of the portfolio is expected to be concentrated in the technology sector, which subjects the Fund to the specific risks of that industry.

Frequently asked questions