US & International Investors

US / International Investors FAQ

What is the minimum investment commitment for US/International investors?

Minimum US$150,000 per investor. Please note that the larger commitment attracts lower fees. Please reach out to us for more details on different classes of units and fees. The committed capital will be drawn in 4–5 tranches over 30 months starting from June 2026.

What is the investment structure for US/International investors?

US-based investors will participate through SilverX USF LLC, a US LLC feeder structure ("Feeder"). The Feeder structure helps US investors avoid direct India onboarding complexity and provides consolidated reporting (K-1, capital account) for them. This Feeder will accumulate money from US/International investors and then invest in the SilverX Fund based on the drawdown schedule. However, US/International investors may prefer to invest directly into SilverX Fund, subject to their eligibility and compliance. Please note that investors from Pakistan and Bangladesh are not eligible to invest in the Fund.

Can I invest using a 401(k) or IRA?

Yes, you may participate using a 401(k) or IRA, subject to your plan's eligibility rules and custodian approval. Please contact your tax advisor for further guidance.

Does my immigration status affect my ability to invest?

No, your immigration status does not impact your eligibility to invest through the Feeder. Please contact your tax advisor for further guidance.

What are the different classes of units/shares issued to the US/International investors?

The Feeder will issue different classes of units to the US/International investors based on their commitment amount. Please refer to the partnership agreement of the Feeder for more details. The Feeder will receive Class F units from SilverX Fund based on the drawdown made from time to time.

Is there currency hedging available for US/International investors?

There is no currency hedging available for US/International investors. The investors will invest in the Feeder in US dollars, which will be accumulated by the Feeder and then invested in SilverX Fund. The Feeder gets Class F Units from SilverX Fund after conversion of US dollars into Indian rupees at the applicable exchange rates. At the time of exit/return, SilverX Fund will return the applicable amount to the Feeder in Indian rupees, which gets credited in US dollars at the applicable exchange rates and the amount is distributed to the US/International investors pro-rata to their investment in the Feeder.

What is the hurdle rate for US/International investors?

The hurdle rate is the minimum annual return you must receive before the fund managers earn any carried interest (profit share). It acts as a performance floor. SilverX GPs will participate in profits only after the investor has received their investment amount back plus the hurdle return. For US/International investors, the hurdle rate is 7% per annum compounded.

What is the investor onboarding process for US/International investors?

Step 1, Sign Soft Commitment Letter indicating your commitment amount with the Feeder.

Step 2, Receive Feeder Docs like Feeder LLC Documents.

Step 3, Onboarding through our vendor's digital platform using your KYC documents. Takes typically 5–10 business days, runs in parallel with Step 2.

Step 4, Execution of partnership agreement with the Feeder digitally through our vendor's digital platform. Your commitment becomes legally binding at this stage.

Step 5, Capital Calls Begin with first drawdown in June 2026. Capital will be drawn in 4–5 tranches over the next 30 months. Investors will receive a formal drawdown notice of 15 business days before each drawdown.

What are the KYC requirements for US/International investors?

You are required to submit your standard KYC documents to the Feeder at the time of onboarding. The process is straightforward and handled digitally wherever possible. Additional documents may be requested depending on the investor type or jurisdiction. The US GP team will guide you through any additional requirements.

What are the periodical updates/statements US/International investors would receive?

We believe in keeping our LPs well-informed and engaged periodically. You can expect to receive the following reporting:

Monthly, Newsletter: Portfolio updates, market colour, and team insights delivered to your inbox.

Quarterly, Financial Update, statement of units, capital deployment status, and key milestones.

Annually, Annual Report of the Fund, its valuation and portfolio performance as mandated by SEBI.

In addition, we host periodic investor meets and webinars with our portfolio companies where the updates are shared.

What are the tax implications for the US/International investors?

As a SEBI-registered Category II AIF, SilverX Fund operates as a pass-through entity for tax purposes. This means gains from the gains received by the Feeder from its investment in SilverX Fund will be taxed in the hands of the Feeder and not at SilverX Fund. However, SilverX Fund is required to withhold taxes at the rates in force i.e. the rates specified in the Indian Finance Act of the relevant year or rates specified in the applicable DTAA entered into between India and US, whichever is higher, before remitting the returns to the Feeder.

The Feeder is set up as a fiscally pass-through entity and US/International Investors will be liable for taxes on the capital gains on investment in the Feeder. However, US/International Investors will be able to claim pro-rata tax credit for the withholding taxes by SilverX Fund to the Feeder. Please contact a qualified tax advisor for further guidance.

Currently, the Feeder will attract the following taxation in India for its investment in SilverX Fund:

Tax treatment	Pass-through, taxed at the Feeder
Applicable tax	Long-Term Capital Gains (LTCG) if units in SilverX Fund are held by the Feeder for 24 months or more Short-Term Capital Gains (STCG) if units in SilverX Fund are held by the Feeder for less than 24 months
Applicable withholding tax rate	For LTCG, 12.5% plus applicable surcharge and education cess for all non-resident investors For STCG, 35% plus applicable surcharge and education cess for non-resident companies, and 30% plus applicable surcharge and education cess for non-resident individuals
Annual tax statement	Provided by the fund to each LP (K1)

Note: Tax treatments for different classes of investors may vary. We recommend consulting a qualified tax advisor for professional advice. The above tax rates may change as per future government policy.

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Questions? Write to us at natasha@silverx.vc

This FAQ is prepared by SilverX for the general information of the investors or prospective investors of SilverX Fund, and it does not constitute legal, tax, or investment advice. You are recommended to consult your legal advisor and a qualified tax advisor before making any investment decisions or establishing retirement account structures. SilverX reserves the right to modify this FAQ from time to time.