What rules apply to my transfer?

Sydecar checks every transfer against five rules. 

1. Transfer type. There are two types of transfers, administrative transfers and sales. Administrative transfers are transfers between related parties, and sales are transfers between unrelated parties. Sydecar does not process payments for sales of interest. Administrative transfers that do not have the same control person require additional review from Sydecar to determine the relationship. Learn the difference.

2. PTP safe harbors. PTP safe harbors protect Sydecar SPVs from turning into publicly traded partnerships, which have different tax requirements that Sydecar cannot support. There are two safe harbors that Sydecar relies on: no more than 2% of the SPV’s value can be transferred in a calendar year, and/or the SPV cannot have more than 100 beneficial owners. One or both of these conditions must be true. Beneficial owners from administrative transfers don’t count towards the PTP beneficial owner count. Learn more.

3. 90-day holding period. Interest in an SPV must be held for 90 days before it can be transferred in a sale. If a transfer of interest is requested before the 90 day mark for a sale, the transfer undergoes additional review from Sydecar. Learn more.

4. Effective date. The effective date of a transfer, which can be any date after the SPV closes (with certain exceptions) Learn more.

If a transfer doesn't meet a rule, the app flags it before anyone signs. See Why was my transfer flagged for review?

Still have questions? Contact our Deal Operations team at operations@sydecar.io.