Capital Q Taps Peak Capital to Wholesale $92M Nontraded BDC to RIAs

Capital Q® Ventures Inc. hired Peak Capital Solutions as wholesaler for CAPQ BDC Inc., its $92.4 million nontraded business development company. The BDC invests across venture capital, private credit, and private equity. It is sold as a private placement only through registered investment advisers, and Capital Q said it has filed to register a version of the fund for a public offering.

Peak will market the fund to RIAs through its national network, providing adviser education, due diligence support, and research. The fund is available on the Charles Schwab, Pershing, and Altruist custodial platforms, Capital Q said.

“For us, this is about putting the right infrastructure around the fund as we continue to grow,” said Michael “Q” Quatrini, chairman and chief executive officer of Capital Q Ventures. “Bringing Peak alongside our internal team gives us a much broader ability to engage with financial professionals, educate advisers about our approach, support the diligence process and build relationships across the wealth management community.”

CAPQ BDC reported a net asset value of $92.4 million, or $1,462.26 per share, as of June 30, with 156 investors, according to the company. The portfolio holds 62 venture capital investments, 14 private credit investments, and six private equity investments. By asset value, the mix is 57% venture capital, 29.6% private credit, and 13.5% private equity. Capital Q calls this its full-stack venture capital fund strategy.

The fund is managed by Capital Q Management LLC. It requires a $100,000 minimum investment and offers a single class of common stock with no upfront fee. The fund charges a 1.75% management fee and a 20% incentive fee on income and capital gains. The incentive fee is subject to an 8% hurdle on distributed income and realized gains and is paid only after a two-year lockup. Operating expenses run about 3%, Capital Q said. Investors receive 1099-DIV tax forms rather than K-1s.

Quarterly distributions are paid mainly from net investment income, generated largely by the private credit and private equity holdings. Realized capital gains are paid out as special dividends, according to the company. Investors can redeem shares at NAV after a two-year lockup, subject to gates the manager sets based on the timing and extent of NAV growth.

Capital Q said the registration statement for the public nontraded version of the fund is awaiting comments from the U.S. Securities and Exchange Commission. As part of that process, the fund is being reorganized from a Florida corporation into a Delaware statutory trust, a legal entity form unrelated to the 1031-exchange DST structure.

“Alternative investments require more than simply putting a product in front of an adviser,” said Brian Conneely, president and founder of Peak Capital Solutions. “Advisers need to understand the strategy, the structure and how an investment may fit within a broader portfolio.”

Peak, founded in 2021, is an independent distribution platform that works with alternative investment sponsors from product design through capital raising. The firm has been expanding its wholesaling team, most recently adding a senior vice president for its central region.

Capital Q Ventures was founded in 2017, is based in Maitland, Fla., and reported firmwide assets under management of about $118 million as of June 30.

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