The primary risk is that VCX could trade below NAV, meaning the market price could be less than the underlying value of the portfolio companies. Other key risks to understand:
- Private company valuations can be volatile and may not move in an orderly manner
- Sentiment around the VCX ticker could fluctuate significantly
- Concentration risk: A few large holdings may disproportionately influence outcomes
Our view is that while these risks are real, we believe the potential upside significantly outweighs them. You're already exposed to private company valuation risk in the current structure, but without the potential for premium capture or true daily liquidity.
