Connetic Plans to Take Venture Interval Fund Private, Halts Sales to New Investors

Shareholders who don’t qualify for the private vehicles would be redeemed, and those who remain would be limited to tender offers the manager chooses to make, in place of scheduled quarterly repurchase offers.

November 5, 2026

Connetic RIA, LLC is seeking to take the Connetic Venture Capital Access Fund (VCAFX) out of the registered fund market. On October 30, the fund's board of trustees approved, on the adviser's recommendation, a set of proposals to convert the venture capital interval fund into two private investment funds that would not be registered under the Investment Company Act of 1940. The fund also suspended sales of its shares to new investors, effective immediately, according to a November 4 supplement to its prospectus.

The two successor vehicles would rely on separate exclusions from registration, one under Section 3(c)(1) of the 1940 Act and the other under Section 3(c)(7). Section 3(c)(1) funds are capped on the number of beneficial owners they can have, and Section 3(c)(7) funds are limited to qualified purchasers. Neither may make a public offering of its shares.

What Shareholders Will Vote On

Shareholders will be asked to approve several proposals tied to the conversion, including:

• eliminating the fund's fundamental policy of making quarterly repurchase offers;
• converting the fund from a Delaware statutory trust to a Delaware limited liability company;
• deregistering the fund under the 1940 Act; and
• redeeming shareholders who are not eligible to invest in the private funds.

The fund expects to mail a proxy statement detailing the proposals in late November, and the shareholder meeting is scheduled for on or about December 18. The supplement does not say what eligibility standards the two private funds will apply, or how and when ineligible shareholders would be redeemed. It also states that there is no guarantee shareholders will approve the proposals.

Liquidity After the Conversion

If shareholders approve, the fund will stop conducting quarterly repurchase offers. Shareholders who move into the private funds would be eligible to participate in tender offers when the manager offers them.

The sales suspension applies only to new investors. Existing shareholders may continue to buy shares, and the fund's automatic dividend reinvestment plan will keep operating for shareholders who have elected to participate.