Chapter II

Closed-end vehicle with a
calibrated liquidity sleeve.

A core late-stage secondary strategy paired with an optional, non-directional yield layer — designed to enhance capital efficiency without diluting venture upside.

Core Strategy

Late-stage secondary exposure

  • Acquire late-stage positions at a discount to primary pricing
  • Direct sourcing from founders, employees, early investors
  • Execute ahead of formal processes — before brokers
  • Valuation re-rating via IPOs, M&A, token events, market convergence
  • 10–15 core positions · $1–2M average ticket
Liquidity Layer

Non-directional yield sleeve

  • Market-neutral yield across on-chain financial infrastructure
  • Multi-manager architecture with external institutional allocators
  • Independent execution, risk, and custody layers
  • Primary redemption buffer · reduces forced-exit risk
  • Stable return layer alongside asymmetric venture upside
Target Gross MOIC2.5–4.0×
Target Net IRR20–30%
Hurdle Rate8%
WaterfallEuropean
II.II Fund Parameters

Built for institutional discipline.

Structure

Fund Size$50M target
Lifetime5–7 years
Investment Period2–3 years
Minimum Commitment$500K
GP Commitment1–1.5%

Economics

Management Fee2%
Carried Interest20%
Hurdle Rate8%
WaterfallEuropean
High-Water MarkNew profits only

Mandate

FocusCrypto infrastructure
InstrumentsCommon & preferred
Token ExposureSelective
GeographyUAE · UK · Europe
Per Transaction$1–2M
II.III Investment Structure

Deal-by-deal secondary structure.

LP capital flows through dedicated SPVs into target company securities — preserving per-deal entry economics, allowing common-vs-preferred selection by deal, and providing look-through exposure.

Individual InvestorsFamily Offices · LP Commitments
Keystone Capital GP2% mgmt · 20% carry
Cayman Islands LPFund Vehicle · OpCo
SPV 1Delaware LLC
SPV 2Delaware LLC
SPV 3Delaware LLC
Target 1OpCo
Target 2OpCo
Target 3OpCo
II.IV Liquidity Sleeve

Yield, control, and
fund-level flexibility.

15–20% NAV allocated to a non-directional yield layer with multi-manager architecture, institutional custody, and independent risk monitoring.

01

LP Capital

Blended vehicle commitment

↓
02

Keystone Fund

15–20% NAV allocated to liquidity sleeve

↓
03

External Managers

MEV StrategyEdge StrategyHardcore Strategy
↓
04

DeFi Execution Layer

Lending · staking · restaking · derivatives

↓
05

Risk & Custody

Hedging · position limits · on-chain alerts · institutional custody · segregated wallets

II.V Institutional Setup

Aligned with the standards LPs expect.

LegalBGP
AuditorDeloitte
CustodyCopper · Coinbase
JurisdictionsADGM · Cayman Islands
Fund VehicleCayman Islands LP
Deal SPVsDelaware LLC
GP Commitment1–1.5% of fund size
ReportingQuarterly · audited annually
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