Valinor launches tokenized Business Development Company fund on Superstate
Opening
Valinor Digital announced the launch of the Valinor BDC Exposure Fund (ticker VBDC) as a tokenized fund on Superstate’s FundOS platform. The fund holds publicly listed Business Development Companies (BDCs) and offers daily subscriptions and redemptions for qualified investors.
Key points
- Fund size: $4.995 million across 499,157 shares.
- Net asset value (NAV) per share: $10.007174.
- Minimum investment: $100,000.
- Management fee: 1.25 % of average daily NAV.
- Redemption gate: up to 7.5 % of NAV per day.
- Token contract address: 0xA4E0Ac02de99e23C76480dD75e55894fD74cDECF (live Sep 1).
Fund structure
The VBDC fund is issued as a series of Superstate Asset Trusts and managed by Valinor Digital Capital. It is limited to accredited investors who are also qualified purchasers under the Section 3(c)(7) exemption, keeping it outside the Investment Company Act.
Token contract
The fund’s token is an upgradeable proxy on Ethereum. As of the announcement, the total supply is zero and no transfers have occurred. Superstate lists the fund’s DeFi integrations as “Coming soon.”
Liquidity and redemption
Investors can subscribe until 3:59 p.m. ET. Redemption requests submitted by 2 p.m. ET are processed at that day’s NAV and settle the next business day. The fund can redeem up to 7.5 % of NAV per day, with the option to prorate or defer larger requests.
Fees and costs
In addition to the 1.25 % fund management fee, investors indirectly bear the underlying BDCs’ base and incentive fees, financing costs, and operating expenses. A portion of idle cash may be placed in the tokenized Invesco Short Duration US Government Securities Fund (USTB), which carries its own 0.15 % management fee.
Risk and pricing
BDCs trade at prices that can be significantly below the net asset value of the loans they hold, creating a discount‑to‑NAV risk for the fund. The fund’s risk factors include premium/discount volatility, leverage at the BDC level, and concentration risk from the “smart‑beta” weighting methodology.
Platform impact
VBDC is the fourth tokenized fund on Superstate’s rails, bringing the platform’s total fund assets to just over $1 billion. The other funds include USTB ($816 million), Bitwise Crypto Carry Fund ($158 million), and Coinbase USD Stablecoin Yield Fund ($25 million).
