Craft Pod is designed with a 5-year term in mind, which means your investment is intended to be locked in for about five years. This timeframe is chosen to allow the strategy (including aircraft operations and asset growth) to play out and to align with tax planning considerations. Here’s what happens as that term approaches its end: Craft plans a “recap” (recapitalization) event around the 5-year mark. In simple terms, a recap is a refresh or rollover of the fund’s structure. Rather than just liquidating everything and ending the fund, Craft aims to give investors options at year five.
During the recap, you’ll typically have a decision: you can exit the fund or stay invested. If you choose to exit, you would redeem your share of the fund. If you choose to continue, Craft may roll your investment into a new fund or a successor vehicle as a tax-free rollover, allowing you to keep deferring taxes and maintain a stake in the assets (potentially with a new 5-year horizon). The recap might also involve bringing in new investors at that time: for example, new members’ contributions could buy out those who are exiting. This way, the aircraft and portfolio can continue under a new term with fresh ownership, and exiting members get their value out without forcing asset sales.
The recap strategy is how Craft manages to offer a ~5-year term while still preserving the tax-deferred nature of the investment. (Traditional exchange funds often require 7+ years; Craft’s recap approach is an innovation to add flexibility.) When the time comes, Craft will outline the available options and process in detail. But overall, you can think of the 5-year term as a checkpoint where you can reassess. The recap is there to facilitate a smooth transition – whether that means cashing out, rolling over into a new pod, or some combination thereof. It’s designed to be investor-friendly, providing liquidity and choice at five years, rather than simply ending the program. (For related info, see What happens at the end of the lock-up term? and Will there be an option to roll over into a new fund?)