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Regulatory Framework: PTP & Safe Harbors

What is the "Safe Harbor" Regulatory Benefit?​

By transferring positions through Liquidity Hub (a Qualified Matching Service or QMS), GPs benefit from an increase in the annual safe harbor limit on LP stake transfers from 2% to 10% of committed capital. This allows for significantly more liquidity without triggering adverse tax events.

Are there restrictions on listings (e.g., PTPs)?​

Yes. For Publicly Traded Partnerships (PTP), a specific percentage or dollar cap limit is set for each partnership.

  • Real-Time Monitoring: The platform monitors PTP levels in real-time.
  • Alerts: If the limit is nearing capacity, the listing button will be greyed out, and an informational pop-up will explain to the Seller why they cannot proceed.
  • Notification: Tangible automatically notifies iCapital before the PTP limit is reached.
  • Reporting: A summary of sales, including specific PTP details, is available on the platform for iCapital to view.

What are the "Time-Based Rules" for the auction?​

To maintain QMS status and the 10% safe harbor, the platform enforces a strict regulatory timeline:

  • 15-Day Minimum (Awarding): A minimum of 15 days must pass after the Bidding Window opens before a seller can award a winner.
  • 45-Day Minimum (Closing): Purchase and Sale Agreements, transfer agreements and wire transfers can only be executed after a minimum of 45 days have passed since the Bidding Window started (and the listing became visible).
  • 60-Day Re-listing Wait: If a listing is withdrawn, does not sell, or expires, the seller must wait 60 days before re-listing the position.