Connetic Interval Fund Halts New Sales Ahead of Vote to Go Private

Connetic Venture Capital Access Fund, a $43.6 million interval fund that invests in early-stage private companies, plans to convert into two private investment funds and has stopped accepting new investors ahead of a shareholder vote, the fund said Nov. 4.

The fund’s board of trustees approved the conversion proposals Oct. 30 on the recommendation of its investment adviser, Connetic RIA LLC. The fund did not give a reason for the conversion.

Shareholders will be asked to approve eliminating the fund’s fundamental policy of making quarterly repurchase offers, reorganizing the fund as a Delaware limited liability company, deregistering the fund under the Investment Company Act of 1940, and redeeming shareholders who are ineligible to invest in the private funds.

The two successor funds would rely on Sections 3(c)(1) and 3(c)(7) of the ’40 Act, respectively, which exclude certain private funds from registration. The fund did not specify which shareholders would be eligible for each fund.

The fund expects to mail a proxy statement to shareholders in late November, with the shareholder meeting scheduled for on or about Dec. 18.

The fund immediately suspended sales of its shares to new investors. Existing shareholders may continue to buy shares, and the fund’s dividend reinvestment plan will continue for shareholders enrolled in it.

If shareholders approve the proposals, the fund will stop conducting quarterly repurchase offers. Once the conversion is complete, shareholders would be eligible to participate in tender offers when the manager offers them, the fund said. There is no guarantee shareholders will approve the proposals, according to the fund.

The conversion would return the strategy to a private structure. The fund began operations Oct. 3, 2024, after acquiring the assets and liabilities of 908 Investments LLC, a private fund managed by the same adviser, in a tax-free reorganization. Predecessor fund investors received Class I shares, bringing $37 million into the fund at launch, according to the fund.

At launch, Connetic Ventures co-founder and managing partner Brad Zapp told nonprofit news outlet LINK nky that the firm had sought a registered product that could be sold to non-accredited investors. Connetic Ventures is an early-stage venture capital firm based in Covington, Ky.

The fund reported a total return of negative 3.07% for its fiscal year ended March 31, 2026, and a cumulative return of negative 2.10% from inception through that date. Net asset value per share fell to $9.79 from $10.10 during the fiscal year. The adviser attributed much of the decline to lower valuations tied to public software company comparables in the quarter ended March 31, when the fund returned negative 5.32%.

Net assets were $43.6 million as of June 30, up from $40.9 million at March 31.

In its four repurchase offers during fiscal 2026, the fund bought back between 0.58% and 4.44% of outstanding shares. The largest, in the offer that closed Jan. 26, 2026, approached the fund’s standard 5% offer amount. The April 2026 offer repurchased 0.52% of shares.

As of March 31, the fund held 157 positions across about 108 companies, and more than 90% of its net assets were in Level 3 securities valued using significant unobservable inputs. The fund charges an advisory fee of 1.9% of average daily net assets and reported a net expense ratio of 2.80% for fiscal 2026.

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