--- title: "Secfi Review 2026: How the Stock Option Financing Works, What It Costs and Who It Suits" url: https://altstreet.investments/platforms/reviews/secfi kind: platform-review updated: 2026-10-26 description: "Secfi review 2026: how its non-recourse stock option financing works, why an equity share on the full pledged pool drives the cost, a worked comparison with selling, the conflicts Secfi discloses, and its regulatory record." publisher: AltStreet (https://altstreet.investments) license: Public factual pages may be read, quoted and cited with attribution and a link. Bulk redistribution is not permitted. --- # Secfi Review 2026: How the Stock Option Financing Works, What It Costs and Who It Suits Secfi arranges non-recourse financing for employees of late-stage startups: cash to exercise stock options or against shares they hold, settled at an IPO or acquisition by repaying the advance, an advance rate that compounds quarterly and an equity share of the shares' exit value, after a platform fee of up to 5%. Secfi's investor page says the equity share is charged on the full pool of pledged shares while advances run at 20 to 50 cents per dollar of underwritten value, which does most to decide what an employee gives up in a strong exit. Rates are set per company and person in a proposal, and the money comes from institutional investors, including Secfi-managed funds. AltStreet score: 37.9 (C-), scored October 27, 2026. Method: https://altstreet.investments/platforms | Field | Value | | --- | --- | | Platform | Secfi | | What it is | Stock Option Financing, Secondary Brokerage and Wealth Management for Startup Employees (FINRA Broker-Dealer; SEC-Registered Adviser; Qualified-Purchaser Funds) | | Asset class | Non-recourse private securities contracts with startup shareholders, secured by private company shares; limited partnership interests in Secfi's qualified-purchaser funds | | Website | secfi.com | | Review first published | October 26, 2026 | | Last updated | October 26, 2026 | | AltStreet relationship | None: no affiliate, sponsorship or partnership | ## The short version Secfi, operating since 2018, gives employees of late-stage private companies cash to exercise options or against shares they already hold, without selling them. The contract is a private securities contract, not a loan: at an IPO or acquisition the employee repays the advance, an advance rate that compounds quarterly and an equity share of the shares' value at exit, and, as Secfi describes it, owes nothing if the company never exits. The equity share is what matters most: Secfi's investor page says it is charged on the full pool of pledged shares, and advances run at 20 to 50 cents per dollar of that pool. Rates are set per company and person, so the proposal is where the cost is decided, and comparing proposals is part of using the product. It suits employees of large late-stage companies who expect a strong exit and want to keep their position; below roughly two to three times the current value, selling the same cash's worth of shares can leave an employee better off, at the illustrative rates AltStreet used. Secfi's broker-dealer and advisers have clean records, two of the three funds on its adviser's latest Form ADV report audits, and its Reg BI FAQ states the conflicts of its structure plainly. - **Full pool** Secfi's investor page: the advance is '20 - 50 cents on the dollar relative to Secfi's underwriting' and the equity fee 'is due over the full collateral pool', so the equity share applies to every pledged share, not only those the advance paid for. - **2.3x to 2.7x** Exit value, as a multiple of the shares' current value, above which financing leaves more than selling the same cash's worth of shares today, in AltStreet's illustration at hypothetical rates (8% advance rate, 20% equity share, two to four years). Below it, the seller keeps more. - **Per proposal** Advance rate and equity share are set by company and person and stated in each proposal, which Secfi says shows the exit price at which the financing pays off. The platform fee is 5% (or 'generally up to 5%'), $5,000 on $100,000 in Secfi's own example. - **Non-recourse** As Secfi describes it: nothing owed without an exit, and the obligation limited to the shares, 'except when in breach of contract'. AltStreet did not see a contract. - **0** Disciplinary disclosures for Secfi Securities (FINRA CRD 302112), Secfi Advisory Limited (CRD 306961) and Secfi Limited (CRD 289793); all nine Form Ds of Secfi-named vehicles filed on time. - **QP only** Secfi's funds are open only to qualified purchasers and institutions; its three investor pages end in a contact form, with no terms or documents. Not a product for retail investors. Data note: Terms and claims from secfi.com as displayed October 26, 2026. The worked table and the 2.3x to 2.7x range use rates AltStreet chose for illustration (8% a year compounding quarterly, a 20% equity share, a 5% platform fee inside the advance), pre-tax and before trust fees; Secfi's actual rates are set per proposal. Fund figures from the Form Ds (amount sold as reported) and Secfi Advisory Limited's Form ADV of June 30, 2026. ## Key figures | Figure | What it is | Context | | --- | --- | --- | | Full pool | The equity share falls on two to five times as much stock as the cash advanced. | The equity share is computed on all pledged shares, with advances of 20 to 50 cents per dollar of underwritten value. Stated on the investor pages; the employee pages describe it as a percentage of the shares' value at exit. | | 2.3x to 2.7x | Financing is a bet on a strong exit. | Exit multiple above which financing leaves more than selling the same cash's worth of shares, at AltStreet's illustrative rates. 8% advance rate compounding quarterly, 20% equity share, two to four years; pre-tax. Actual rates are in each proposal. | | Per proposal | Advance rate and equity share are set by company and person in each proposal. | Check net cash, accrual base, compounding, the shares covered, caps and repayment at several exit values. | | 0 | Disclosures on BrokerCheck and IAPD for Secfi Securities, Secfi Advisory Limited and Secfi Limited. | Section Partners v. Equitybee dismissed as to Secfi in 2024; Secfi not a party to Serengeti v. Sanberg. | ## Verdict Secfi offers something employees of late-stage startups need: cash to exercise options or diversify without selling, with no repayment if the company never exits, as Secfi describes the contract. The price is set in each proposal, and the term that matters most is the equity share, which Secfi's investor pages say is charged on the full pool of pledged shares. At illustrative rates, that makes financing better than selling the same cash's worth of shares only in a strong exit. Secfi's regulated entities have clean records, two of the three funds on its adviser's latest Form ADV report audits, and its Reg BI FAQ is candid about the conflict of arranging contracts with funds its own adviser manages. Its marketing is less careful: the performance claims have no stated basis, and one page's balance-sheet statement is not reconciled with the institutional structure described elsewhere. **Best for** - Employees of large late-stage companies who expect a strong exit, want to keep their shares, and will compare Secfi's proposal with selling and with another provider's proposal. **Look elsewhere if** - You expect a modest exit or need certainty. - You are a retail investor looking to invest. - Your company is early-stage. **Strengths** - Non-recourse structure as Secfi describes it: nothing owed without an exit. - Clean records for the broker-dealer and both advisers; all Form Ds timely. - Candid conflict disclosure in the Reg BI FAQ and Form CRS. - Two of three funds on the adviser's Form ADV audited by RSM; SS&C administers all three. - Fee-only wealth management with a published fee schedule. **Limitations** - Equity share charged on the full pledged pool, stated on the investor pages rather than the employee pages. - Rates set per proposal; comparison requires several proposals. - Broker and investor-side adviser under one parent; the employee is not the advisers' client. - Performance claims without a stated basis; a balance-sheet statement not reconciled with Secfi's other disclosures. ## Who it fits | Investor | Fit | Why | | --- | --- | --- | | Employees of large late-stage companies who expect a strong exit and want to keep their position | well-suited | | | Employees facing an exercise deadline or a large AMT bill | neutral | | | Employees who want certainty more than upside | neutral | | | Employees at early-stage or smaller companies, and retail investors | poor-fit | | ## Questions **How does Secfi financing work?** Secfi's broker-dealer arranges a private securities contract between you and an investor. You receive cash to exercise options (including taxes) or against shares you hold; at an IPO or acquisition you repay the advance, an advance rate that compounds quarterly, and an equity share of the value of your pledged shares at exit, usually by selling shares. As Secfi describes it, you owe nothing if there is no exit, and your obligation is limited to the shares except if you breach the contract. **How much does Secfi financing cost?** A platform fee of 5% ('generally up to 5%') plus trust fees, and two charges set in your proposal: the advance rate and the equity share. Secfi's investor pages say the equity share is charged on the full pool of pledged shares, which can be two to five times the cash advanced, so ask the proposal for total repayment at several exit values and dates. **Is it better to finance or to sell?** It depends on the exit. Holding the cash raised equal, financing keeps your upside but costs the advance rate and equity share; selling fixes the outcome today. In AltStreet's illustration at hypothetical rates (8% a year, 20% equity share), financing left more than selling only above about 2.3 to 2.7 times the shares' current value. Your proposal's rates, any secondary discount and taxes will move that point. **Is Secfi legit?** Yes, it is a regulated firm with a clean record. Its broker-dealer, Secfi Securities (FINRA CRD 302112), and its advisers, Secfi Advisory Limited (CRD 306961) and Secfi Limited (CRD 289793), report no disciplinary disclosures, and all nine Form Ds of its funds were filed on time. The one lawsuit that named Secfi entities, a trade-secret claim against Equitybee and others, was dismissed as to Secfi in 2024. **Who provides the money?** Institutional investors, including funds managed by Secfi's adviser. Serengeti Asset Management committed $700 million in 2020 and 2021, and since 2024 Secfi has raised its own qualified-purchaser funds. One Secfi comparison page says it funds clients from its own balance sheet, which may refer to its managed funds; ask who your counterparty is. **Secfi or Equitybee?** Both offer non-recourse financing repaid at exit with interest and an equity share. Equitybee funds each contract through investor-backed series LLCs, and its live offers showed 2% to 4% interest and a 17% to 42% equity share when AltStreet captured them in June 2026; Secfi prices each proposal privately. Compare both proposals on the same shares, including which shares the equity share applies to. ## Evidence appendix Platform website captured October 26, 2026. 156 secfi.com pages from the sitemap and nine learn articles; Form D of eight vehicles (nine filings); Form ADV of Secfi Advisory Limited (Schedule D, three funds, and the Part 2A brochure of March 24, 2026) and Secfi Limited; BrokerCheck; both Form CRS, the Reg BI FAQ and the Part 2B supplement; CourtListener. **Highlights** - Investor page: 'An “equity fee” is due over the full collateral pool'. - Reg BI FAQ: 'there is an incentive to broker securities contracts ... with greater frequency and for larger amounts than otherwise may be advisable.' - Part 2A brochure, Item 14: Secfi Wealth clients 'will, and are expected to, serve as Shareholder counterparties to Forward Contracts with the Forward Contract Funds'. - Important information: 'Shareholders are not customers or clients of the Advisers as related to a Secfi Financing transaction.' - Reg BI FAQ: on a $100,000 contract 'Secfi Securities will typically charge a $5,000 brokerage commission.' **Primary source pages** - secfi.com/diversified-fund and /separate-managed-vehicles: advance 20 to 50 cents on the dollar; equity fee 'due over the full collateral pool'. - secfi.com/financing and product pages: 'Financing : 5% platform fee, an Advance Rate (similar to interest), and Equity Share'. - Help center: business model, total financing cost, repayment, eligibility, tax treatment, wealth fees. - secfi.com/best-interest: Regulation Best Interest FAQ (September 16, 2025). - secfi.com/secfi-equitybee-esofund-comparison: 'Secfi's own balance sheet'. - Form CRS of Secfi Advisory Limited (March 24, 2026) and Secfi Securities (September 1, 2022). - Form ADV of Secfi Advisory Limited, June 30, 2026: Schedule D. - Form ADV Part 2A brochure of Secfi Advisory Limited, March 24, 2026: Items 4, 5, 8, 10, 12 and 14. - Form Ds of Secfi Matterhorn, Weisshorn and Hudson funds and the 2018 CoVenture vehicles. - Complaints in Section Partners Management v. Equitybee (N.D. Cal.) and Serengeti Asset Management v. Sanberg (S.D.N.Y.). ## Related - Full review (HTML): https://altstreet.investments/platforms/reviews/secfi - Every platform review: https://altstreet.investments/platforms/reviews - Methodology and scoring: https://altstreet.investments/platforms - Category hub: https://altstreet.investments/categories/secondary-pre-ipo-markets --- Source page: https://altstreet.investments/platforms/reviews/secfi Machine index: https://altstreet.investments/llms.txt AltStreet reads what platforms, funds and issuers file with the SEC and what they tell investors, and publishes the difference. Figures are as filed or as captured on the date stated; nothing here is investment advice.