Since IPOs have slipped to trickle a few years ago, limited partners invested in capital funds with a giant problem: a hungry liquidity.

Lack of money back is more disturbing for rich individuals or their small family offices – which governs the rich – which makes many investments in VC funds.

Locking funds locked in capital capital is a large issue for businessman Mike Hurst. After selling exactly, a paid start he built at City National Bank in 2018, he invested a great part of the goods of stocks and technology funds.

After tech stocks crashed 2022 and Hurst told the techcrunch he had no free money to support his commitments on VC funds.

“Companies continue to come for capital calls and new investments. I want to do it, but I don’t want to loan home, to sell Amazon for $ 210,” he says it will come to $ 210, “he said.

That experience gives the hurst idea to make a credit product that will allow limited borrowing partners secured by their LP position.

Hurst makes his view of the turbine, a debt platform for limited partners private equity and vc. The company will go out of stealth on Friday and announces that it raises the amount of $ 22 million in equity funds pondison and TTV capital of Fin Capital and TTV Capital, and Sobo searching.

The company also secured up to $ 100 million debt from Silicon Valley Bank to support the loan creator.

Turbine provides a way for limited access partners with funds using their funding fund as a home equity line or a margin line using stock holdings.

Garromer Garrard, The co-founder and the TTV capital mate of the TTV said he was immediately excited about the turbine when he was set at Hurst.

“I have many incidents in which I approached an LP, asking about liquidity,” Garrard said. But there are no many many options for helping an investor in a fund to get money.

Garrard explained that TTV can sell stock in a portfolio market portfolio to help investors, but he does not want to sell an asset to serve only one LP.

Alternally, LP can be tested Sell ​​their stake .

Turbine admits that those who offer the rear of the investors in the valued amount of their venture fund position without stopping on the future. For example, if the first $ 3 million investment in a fund is growing at $ 10 million, they can use $ 10 million valuations in their debt.

Squirrel is that these loans are not cheap. Rate of interest today around 9% (the main rate is now 7.5%, so many loans these days in any kind are not cheap.)

But Gerrard has argued that it may still be considered a “reasonable rate and more cheaper than the cost of selling” stake in the second markets, or even a discount.

Turbine’s first customers are five first firms that support the justification to raise it. General partners of these companies have already offered their LPS access to Turbine credit, Hurst said, adding it is available in additional VC funds.

“I can’t believe that we don’t have something like this for our LPS” before, it says Garrard.