Chayne Modern Yield Fund
Less Friction. More Capital Efficiency. Superior Net Yield.
8–12% net returns from short-duration, cash-flowing real-world assets. High-quality private credit with predictable income streams, clear legal structures, and established markets, delivered via tokenized, blockchain-native infrastructure with qualified custody and daily transparency.
This table describes the fees and expenses that you may pay if you invest in the Fund. You may qualify for reduced fees through certain investment minimums or qualified feeder structures.
| Fee Structure | |
|---|---|
| Management Fee1 | 1.50% |
| Performance-Based Fee2 | 15% |
| 1 The Management Fee includes all fund operating expenses including custody, administration, audit, legal, and fund accounting fees. 2 Performance fee applies to Core and Opportunistic sleeves only (excludes Liquidity Sleeve); calculated annually with high-water mark provisions. | |
Accredited investors and institutions seeking enhanced fixed income returns with short duration, transparent operations, and policy-compliant structure.
Minimum Direct Investment: $250,000
IRA feeder access available for smaller allocations ($50,000–$100,000), aggregated via approved IRA custodians to meet fund minimums while maintaining ERISA compliance and fair market value reporting workflows.
- Superior Net Yield: Target 8–12% net returns vs. legacy fixed income at 3–5% net
- Short Duration Focus: 30–360 day ladders with senior-secured collateral
- Institutional Wrapper: SEC Reg D 506(c) with qualified custody, daily NAV, annual GAAP audit
- Operational Alpha: Modern infrastructure compresses operational friction by 50–150 bps
Three-sleeve architecture designed for consistent yield generation with institutional risk controls. Portfolio balances income generation (70% core), alpha strategies (20%), and liquidity (10%).
The Fund targets real-world assets that represent the optimal intersection of yield, liquidity, and tokenization readiness:
| Criterion | Rationale |
|---|---|
| Short Duration | 30–360 day maturities enable rapid capital rotation, frequent liquidity windows, and reduced interest rate sensitivity |
| Reliable Cash Flows | Predictable, contractual income streams (interest, receivables, premiums) provide transparent yield and support consistent distributions |
| Low Principal Volatility | Stable underlying asset values reduce NAV fluctuation and enable use as DeFi collateral without forced liquidation risk |
| Clear Legal Ownership | Assets wrapped in established legal structures (SPVs, trusts, loan agreements) where on-chain tokens map 1:1 to enforceable rights |
| Established Markets | Existing pricing mechanisms and secondary markets provide valuation transparency and exit optionality |
| Sleeve | Allocation | Strategy | Target Yield |
|---|---|---|---|
| Core Income (Beta) | 70% | Short-duration, senior-secured private credit and asset-backed cash flows: trade finance and receivables, select structured credit, tokenized insurance/reinsurance, essential-service infrastructure, commodity-linked loans, and real estate debt. Strong collateral coverage with rapid amortization (30–360 days). | ~9.0% |
| Opportunistic (Alpha) | 20% | Short-tenor, market-neutral strategies that harvest structural frictions as RWAs migrate on-chain: • Funding & basis spreads: delta-neutral cash-and-carry, tokenized T-bill vs. stablecoin funding differentials; typical tenor 1–30 days • Over-collateralized credit: secured revolving loans to whitelisted borrowers/venues; dynamic LTV with daily NAV visibility • RWA special situations: launch incentives, secondary discounts, short-duration mispricings in tokenized receivables or credit; ≤90 days, single-name cap ≤2% NAV Strict risk limits govern exposure, VaR, and drawdown caps. |
+3.0% |
| Liquidity Sleeve | 10% | ~3% cash (USD/USDC) and ~7% tokenized Treasuries/MMFs (T+1 liquidity). Earns prevailing short-end yield; funds redemptions and time-sensitive deployment while eliminating idle-cash drag. | — |
| Portfolio allocations are targets and may vary based on market conditions and investment opportunities. Subject to change without notice. | |||
| Control | Implementation |
|---|---|
| Diversification | Issuer concentration caps (≤5% NAV per issuer/platform) with diversified exposures across asset types and geographies |
| Duration Control | Short-duration ladders (30–360 days) minimize interest rate sensitivity while maintaining continuous liquidity |
| Collateral Standards | Secured lending with conservative LTV ratios: target 60–65%, margin ~70%, liquidation ~75% |
| Real-Time Monitoring | On-chain monitoring with automated alerts for covenant breaches or collateral deterioration |
Illustrative economics based on portfolio allocation targets and current market conditions. Actual returns will vary based on deployment pace, market conditions, and asset performance.
| Component | Basis Points | Percentage |
|---|---|---|
| Core Yield (Beta Sleeve) | 900 | 9.0% |
| Alpha Uplift (Opportunistic Sleeve) | +300 | +3.0% |
| Management Fee | –150 | –1.5% |
| Performance Fee (Carry)1 | –Variable | 15% |
| Target Net Return | 800–1200 | 8.0–12.0% |
| 1 Performance fee: 15% of net returns on Core and Opportunistic sleeves only (excludes Liquidity Sleeve); no hurdle. Illustrative only; not a guarantee. Actual returns will vary based on market conditions, deployment pace, and asset performance. | ||
| Average Duration | 90–180 days |
| Collateral Coverage (LTV Target) | 60–65% |
| Issuer Concentration | ≤5% NAV per issuer |
| Liquidity Profile | Quarterly redemptions |
| Cost Component | Legacy Fixed Income | Chayne Modern Yield |
|---|---|---|
| Gross Asset Yield | ~6.0% | ~9.0% |
| Custody Fees | –30 bps | Included in management fee (qualified custody with MPC controls) |
| Administration Layers | –35 bps | Reduced via blockchain-based reconciliation & reporting |
| Broker Spreads | –25 bps | Minimized (venue-level) |
| Idle-Cash Drag | –35 bps | ≤5–10 bps |
| Other Costs | –25 bps | Included in mgmt fee |
| Management Fee | Variable | –150 bps |
| Net to Investors | 3.0–5.0% | 8.0–12.0% |
| Modern infrastructure compresses operational friction: qualified custody with MPC controls is included in the 1.50% all-in management fee; a single source of truth on blockchain rails reduces reconciliation/admin overhead; T+0 settlement lowers idle-cash drag. Figures are illustrative; actual costs vary by instrument and market conditions. | ||
Traditional fixed income wrappers suffer from structural inefficiencies that erode investor returns. Legacy custody, administration, broker spreads, and idle-cash drag collectively leak approximately 150 basis points, capping many funds near 3–5% net returns despite strong underlying credit demand.
| Bottleneck | Description | Cost Impact |
|---|---|---|
| Settlement Friction | T+2–30 settlement keeps cash idle, creating reconciliation overhead and reducing deployment efficiency | 30–50 bps |
| Access Constraints | Higher-yield, short-duration assets remain gated by high minimums, limited distribution, and complex administration | — |
| Operational Overhead | Multi-party custody chains, manual reconciliation, and broker intermediation add costs before investors see income | 100+ bps |
| Innovation | Benefit |
|---|---|
| Enhanced Asset Access | Tokenized units and feeder structures unlock previously gated, high-quality assets: short-duration private credit, receivables, select insurance-linked securities, and structured credit with institutional compliance. |
| Friction Compression | T+0 settlement and blockchain rails compress reconciliation cycles and idle-cash drag by 50–150 bps. Real-time transparency eliminates multi-party overhead while maintaining full audit trails. |
| Institutional Wrapper | Modern yield delivered in a classic Reg D structure with KYC/AML, qualified custody, daily NAV, and independent administration. No change to allocator workflow or compliance requirements. |
With policy rates elevated and credit spreads compressed in traditional markets, allocators increasingly seek alternative fixed income sources that preserve yield while maintaining institutional governance. The gap between gross asset yields and net investor returns has never been more critical to address.
- Tokenized LP units: Investors hold traditional limited partnership interests recorded on blockchain rails for operational efficiency; legal rights are governed by the LPA and offering documents under Reg D
- Qualified custodian for all digital asset holdings with segregated accounts
- Multi-party computation (MPC) with whitelisting controls and daily sweep to secure cold storage
- Investor liquidity options — tokenized shares may enable collateralization for liquidity access without redemption
- On-chain venues utilize USDC settlement with allow-listed counterparties
- Real-time monitoring with automated alerts for unauthorized activity
- SEC Regulation D 506(c) offering limited to verified accredited investors
- Full AML/CIP and sanctions screening via qualified custodian and administrator
- Transfer restrictions on tokenized units to maintain compliance with securities regulations
- Patriot Act reliance with IRA custodians where applicable for feeder vehicles
- Ongoing monitoring for regulatory developments and policy alignment
- Daily NAV calculation using independent oracles and pricing services
- Third-party proof of assets and reserves with reconciliation to custodian
- Monthly administrator statements from independent third-party administrator
- Annual GAAP audit by recognized accounting firm
- Investor dashboard providing real-time access to balances, accruals, and transaction history
- Issuer concentration caps: ≤5% NAV per issuer/platform to ensure diversification
- Duration management: Short-duration ladders (30–360 days) minimize interest rate sensitivity
- Collateral requirements: Target 60–65% LTV, margin ~70%, liquidation ~75%
- Tenor ladder: Staggered maturities across 30/90/180/360-day rungs for liquidity
- Real-time monitoring: Automated alerts for covenant breaches or collateral deterioration
| Minimum Subscription | $250,000 for direct fund participation |
| Subscription Currency | USD or USDC accepted |
| Redemption Terms | Quarterly redemptions with 30–60 days advance notice; 15% quarterly gate with in-kind option at GP discretion |
| Legal Structure | Delaware limited partnership or similar vehicle, SEC Reg D 506(c) private placement |
Smaller allocations ($50,000–$100,000) available through approved IRA custodian feeder vehicles. These feeders aggregate individual IRA investments to meet fund minimums while maintaining ERISA compliance and fair market value (FMV) reporting workflows. Handled seamlessly within existing IRA custodian platforms.
- U.S. Investors: Partnership taxation with annual K-1 distribution for tax reporting
- Non-U.S. and Tax-Exempt Investors: Offshore feeder vehicle available to optimize tax treatment and avoid unrelated business taxable income (UBTI) concerns
- Monthly account statements from independent administrator
- Annual audited financials distributed to all investors
- K-1 tax documents delivered by March 15
- Investor dashboard access for real-time balance and accrual visibility
Streamlined accredited investor verification via third-party attestation services. Verification typically completed within 48–72 hours. Fund accepts verification from recognized providers or direct documentation (tax returns, CPA letters, broker statements).
Enhanced Liquidity Infrastructure. While fund interests are subject to transfer restrictions with no public market, tokenized LP shares unlock liquidity pathways unavailable in traditional funds: a private investor marketplace for peer transfers among approved investors; NAV-based collateralization through our lending partner for liquidity access without redemption; and potential future ATS listing for regulated secondary trading. All transfers subject to LPA terms and applicable securities law.
Fund Redemption Terms. Quarterly redemptions permitted with 30–60 days advance notice, subject to a 15% quarterly gate and potential suspension or deferral at GP discretion. The fund reserves the right to satisfy redemptions in kind rather than cash. Redemption proceeds may be delayed pending receipt of proceeds from underlying investments.
Chayne Global Management is a digital-first investment manager focused on capital-efficient fixed income. Our network spans 250+ real-world asset (RWA) projects: issuers, infrastructure providers, investors, and corporates across the capital stack. Our mandate is policy-friendly fixed income with modern infrastructure and rigorous governance.
Chayne Global Management
Telegram: @TravisJohn
OFFERING RESTRICTIONS. This material is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any security. Any offering will be made solely by the fund's confidential offering documents to qualified investors and will be subject to all terms, conditions, and risk factors disclosed therein. Distribution of this material is restricted and may not be forwarded or reproduced without prior written consent.
PERFORMANCE DISCLOSURE. Target returns are illustrative projections based on current market conditions and the fund's investment strategy. Actual returns may vary significantly and are not guaranteed. Past performance does not guarantee future results. Performance data does not reflect the deduction of performance fees or certain other fees and expenses, which will reduce returns. The fund has not commenced operations and therefore has no track record of actual performance.
NO GUARANTEE OF RETURNS. There is no guarantee that the fund will achieve its target returns of 8–12% net annually. Investment returns are subject to market conditions, asset performance, counterparty behavior, operational execution, and other factors beyond the fund's control. Investors may lose some or all of their invested capital. The fund's historical performance, if any, should not be construed as indicative of future results.
PRINCIPAL RISKS. Investments in the fund involve substantial risk, including the risk of loss of principal. The fund invests in private credit, structured products, insurance-linked securities, and other alternative assets that may be illiquid, speculative, and subject to significant volatility. These instruments may have limited or no secondary market, extended settlement periods, and may be subject to restrictions on transfer. The fund's use of leverage may magnify losses. Short-duration strategies do not eliminate credit risk, counterparty risk, or operational risk.
TECHNOLOGY RISKS. Digital asset strategies involve additional risks including technology risk, regulatory uncertainty, cybersecurity threats, smart contract vulnerabilities, and blockchain network disruptions. References to blockchain, tokenization, and on-chain infrastructure describe the fund's operational technology stack and custody mechanisms. Investors receive tokenized limited partnership interests; legal rights are governed by the LPA and offering documents, with blockchain serving as the operational and settlement infrastructure.
REGULATORY STATUS. The fund is available only to accredited investors as defined under SEC Regulation D of the Securities Act of 1933, as amended. The fund is offered pursuant to an exemption from registration under SEC Regulation D Rule 506(c), which permits general solicitation and advertising only to verified accredited investors. Prospective investors should carefully review the fund's private placement memorandum, limited partnership agreement, subscription documents, and all exhibits thereto before investing.
ADVISER REGISTRATION. Chayne Global Management investment funds are currently exempt from registration with the U.S. Securities and Exchange Commission ("SEC") in reliance on the private fund adviser exemption under Section 203(m) of the Investment Advisers Act of 1940, as amended ("Advisers Act"). Chayne Global Management may be required to register with the SEC in the future should assets under management or the number of clients exceed applicable thresholds.
INVESTMENT COMPANY ACT EXEMPTION. The Fund has not been registered under the Investment Company Act of 1940, as amended ("Investment Company Act"), in reliance on the exemptions provided by Section 3(c)(1) or 3(c)(7) thereof. Accordingly, interests in the Fund may not be offered or sold except to investors who meet the applicable qualifications under those sections. The Fund is not subject to the protections, restrictions, and requirements of the Investment Company Act that are designed for the benefit of registered investment companies and their shareholders.
GEOGRAPHIC AND JURISDICTIONAL RESTRICTIONS. The Fund is not registered for public offering in any jurisdiction and may not be marketed or sold to investors except in accordance with applicable private placement exemptions. Prospective investors are responsible for understanding and complying with all applicable laws and regulations of their jurisdiction of residence. Distribution of this material in certain jurisdictions may be restricted or prohibited by law. Persons into whose possession this material comes are required to inform themselves about and observe any such restrictions.
CONFLICTS OF INTEREST. The fund's investment adviser and its affiliates may manage other accounts and funds that invest in similar strategies or assets, creating potential conflicts of interest regarding allocation of investment opportunities, fee structures, and resource allocation. The adviser has adopted policies and procedures designed to address such conflicts. Cross-trading between the fund and other accounts may occur in accordance with SEC exemptive rules and subject to best execution standards.
LIQUIDITY AND REDEMPTIONS. Fund interests are subject to liquidity restrictions. Redemptions are permitted quarterly with 30–60 days advance notice and are subject to a 15% quarterly gate, lock-up periods, and potential suspension or deferral at GP discretion. The fund reserves the right to satisfy redemptions in kind rather than in cash. Redemption proceeds may be delayed pending receipt of proceeds from underlying investments.
VALUATION. The fund values its portfolio investments using a combination of third-party pricing services, broker quotes, independent appraisals, and internal valuation models where market prices are not readily available. Valuation of illiquid and private assets involves significant judgment and actual realized values upon disposition may differ materially from stated net asset values. The fund's administrator performs independent valuation review but ultimate responsibility for fair value determinations rests with the general partner.
TAX CONSIDERATIONS. The fund is structured as a partnership for U.S. federal income tax purposes. U.S. investors will receive Schedule K-1 for annual tax reporting. The fund may generate unrelated business taxable income (UBTI) for tax-exempt investors. Non-U.S. investors may invest through an offshore feeder vehicle to mitigate U.S. tax withholding. Investors should consult with their tax advisers regarding the specific tax consequences of an investment in the fund.
FORWARD-LOOKING STATEMENTS. This document contains forward-looking statements regarding anticipated investment strategies, target returns, market opportunities, and operational advantages. Actual results may differ materially due to market conditions, competitive factors, regulatory developments, technological limitations, or other unforeseen circumstances. The Fund undertakes no obligation to update forward-looking statements.
ERISA CONSIDERATIONS. Employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and other retirement plans and accounts subject to Section 4975 of the Internal Revenue Code should consult with their legal and tax advisers before investing in the Fund. The General Partner reserves the right to refuse any subscription in whole or in part. Certain ERISA and tax-exempt investors may be subject to additional restrictions, required hold periods, or allocation to special purpose vehicles to prevent unrelated business taxable income (UBTI) or plan asset treatment under ERISA.
NO REGISTRATION UNDER STATE LAW. The Fund's interests have not been registered under the securities laws of any state and are being offered and sold in reliance on exemptions from the registration requirements of applicable state securities laws. The Fund is not making an offering in any state where the offer is not permitted. Accordingly, the Fund's interests may not be offered or sold except in states where they may be lawfully offered or sold. Investors must comply with all applicable state blue sky laws.
DISTRIBUTION RESTRICTIONS. This material may not be reproduced, distributed, or transmitted to any person without express written permission. Any unauthorized use, duplication, or disclosure is prohibited and may be unlawful. This material is being provided on a confidential basis solely for the information of those persons to whom it is transmitted and may not be relied upon by any other person or for any other purpose.