Sophisticated Management
for Serious Investors

Independent, research-driven strategies across public equities, fixed income, and private markets — engineered for tax efficiency and long-term wealth preservation.

40+
Private Equity Transactions
100%
Independent Research
100%
Custom Strategies

An Independent Firm, Fully Aligned with You

A California-based registered investment advisory firm serving a select group of discerning investors who demand more than what institutional platforms can offer.

Our Approach

Verasion Asset Management is an independent RIA specializing in fundamental research and active portfolio management for high net worth individuals. We reject the passive indexing approach that has come to dominate the industry.

Instead, we conduct deep, proprietary research to identify compelling opportunities in public equities, fixed income securities, and private transactions — while applying rigorous tax-efficiency disciplines at every stage of portfolio construction.

Our clients receive institutional-quality research, direct access to private deal flow, and a fully bespoke strategy — without the excessive fees, unwanted beta exposure, or conflicts of interest that pervade the wirehouses.

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Truly Objective Advice

No parent company. No product shelf. No distribution incentives. Our recommendations are driven entirely by your interests.

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Access to Private Markets

Our network and 40+ transactions of experience open doors to private equity and venture opportunities unavailable through traditional channels.

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Aligned Fee Structure

We earn our fees on assets under management. When you grow, we grow. No hidden revenue sharing, no soft dollars.

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Complete Transparency

Regular, clear communication on portfolio positioning, rationale, and performance. You always know what you own and why.

Comprehensive Wealth Management

Every engagement is custom-built around your specific financial situation, objectives, and tax profile.

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Public Equity Research

Deep fundamental analysis of individual stocks across market capitalizations and sectors. We identify asymmetric risk/reward opportunities through proprietary research that looks well beyond consensus views.

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Fixed Income Strategies

Credit analysis and bond selection focused on maximizing risk-adjusted returns. We build laddered portfolios of individual bonds — including municipals — tailored to your income needs and tax bracket.

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Private Equity Access

Sourcing, due diligence, and term negotiation across private transactions. We leverage our network and 40+ deals of experience to identify and structure compelling private market investments on favorable terms.

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Portfolio Construction

Thoughtful asset allocation and position sizing across public and private holdings. We integrate tax-lot management, liquidity tiering, and concentration limits to build portfolios that are both resilient and efficient.

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Tax-Efficient Investing

Tax considerations are embedded in every investment decision — not added as an afterthought. From harvest timing and gain deferral to Opportunity Zones and qualified small business stock, we work to keep more of what you earn.

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Custom Long/Short Strategies

Bespoke long/short equity portfolios designed to generate alpha independent of broad market direction. We pair high-conviction long positions with carefully researched short exposure to reduce net beta, manage drawdowns, and improve risk-adjusted returns across full market cycles.

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Ongoing Monitoring & Reporting

Continuous portfolio surveillance, disciplined rebalancing, and proactive adjustment as markets evolve. Transparent reporting and regular communication so you're always fully informed.

Tax-Efficient Investing

"It's not what you earn — it's what you keep." For high net worth investors, tax drag is often the largest single impediment to long-term wealth compounding.

We treat tax efficiency as a core investment discipline, not a secondary consideration. At Verasion, tax strategy is integrated into portfolio construction from day one — influencing holding periods, asset location, harvesting timing, and the structure of private transactions.

Our approach draws on deep familiarity with the relevant code sections, coordination with your tax counsel, and decades of practical experience structuring both public and private market investments for maximum after-tax return.

Tax-Loss Harvesting

Systematic identification and realization of losses to offset gains, deferring tax liability without disrupting long-term market exposure.

Long-Term Gain Preference

Deliberate management of holding periods to qualify gains for preferential long-term capital gains rates, reducing the effective tax drag on returns.

Asset Location Optimization

Placing tax-inefficient assets (high-turnover strategies, taxable bonds) in tax-deferred accounts while tax-efficient equities are held in taxable accounts.

Qualified Dividend Management

Structuring equity holdings to maximize qualified dividend income, taxed at preferential rates, versus ordinary income distributions.

Charitable Giving Strategies

Donating appreciated securities directly, contributing to Donor Advised Funds, and timing large charitable gifts for maximum tax benefit.

Estate & Transfer Planning

Integrating investment decisions with step-up in basis considerations, grantor trusts, and generation-skipping strategies coordinated with your estate attorney.

Key Tax Levers We Manage

Holding Period Management

The difference between short-term (ordinary) and long-term (preferential) rates can exceed 20 percentage points. We track every position's holding period and make timing decisions accordingly.

Wash Sale Compliance

Our harvesting process carefully avoids triggering wash sale rules, using economically similar but not substantially identical positions to maintain market exposure.

Net Investment Income Tax

For clients above the NIIT threshold, we actively manage investment income to minimize the additional 3.8% surtax on net investment income.

Year-End Tax Coordination

We work with your CPA in Q4 each year to align realized gain/loss activity with your broader tax picture — including business income, alternative minimum tax exposure, and projected bracket positioning.

Tax-Lot Specific Accounting

Using specific identification of tax lots when selling, rather than FIFO, to choose the most favorable cost basis and minimize taxable gain in any given year.

Specialized Tax-Advantaged Investment Vehicles

Beyond portfolio-level tactics, we advise on and invest through specialized vehicles that offer structural tax advantages unavailable through traditional brokerage accounts.

Federal Incentive

Qualified Opportunity Zones (QOZ)

Investing capital gains into Qualified Opportunity Zone Funds defers recognition of those gains and, for investments held 10 years, eliminates tax on appreciation inside the fund entirely. We evaluate QOZ deals using the same rigor as any private equity investment.

IRC §1202

Qualified Small Business Stock (QSBS)

Section 1202 excludes up to $10M (or 10× basis) in gains from federal tax on qualifying C-corp investments held over five years. We structure venture and early-stage private equity investments to maximize QSBS eligibility wherever possible.

Municipal Bonds

Tax-Exempt Fixed Income

For clients in high marginal brackets, carefully selected municipal bonds — general obligation and revenue — provide tax-equivalent yields that often exceed taxable alternatives. We analyze credit quality and call features, not just yield.

Depreciation

Real Assets & Bonus Depreciation

Certain private real asset investments generate paper losses through accelerated depreciation that can shelter other passive income. We evaluate these alongside their fundamental investment merits.

IRC §1031

Like-Kind Exchanges

For clients with appreciated real property, 1031 exchanges allow indefinite deferral of capital gains by rolling proceeds into replacement property. We coordinate with your advisors to integrate these transactions into the broader portfolio.

Retirement Accounts

Self-Directed & Defined Benefit

High-income earners can shelter substantial income through defined benefit plans, solo 401(k)s, and other qualified plans. We advise on contribution strategies and, where appropriate, investment of retirement assets in private market opportunities.

Tax Disclosure: The tax-related information presented here is for informational purposes only. Tax laws are complex and subject to change. Verasion Asset Management does not provide tax or legal advice. Please consult with a qualified tax advisor or attorney regarding your specific situation before making any investment or tax planning decision.

Private Equity & Venture Capital

40+ completed transactions have refined a disciplined process for sourcing, evaluating, and negotiating private market investments — from early-stage venture to growth equity and buyouts.

How We Evaluate Deals

Our evaluation framework is designed to surface conviction — and to kill bad deals early before significant time is invested.

1

Market Sizing & Dynamics

We begin with an independent assessment of total addressable market, growth drivers, and competitive intensity. We are skeptical of management-provided TAM figures and build our own from the bottom up.

2

Business Model & Unit Economics

We stress-test gross margins, customer acquisition costs, lifetime value, payback periods, and churn. A company with poor unit economics at scale is not investable regardless of revenue trajectory.

3

Competitive Moat Assessment

What keeps competitors out? We examine network effects, switching costs, proprietary data advantages, regulatory moats, and brand. We require a clear, durable source of competitive advantage.

4

Management Team Evaluation

We conduct reference calls beyond the names provided, evaluate track records in comparable situations, and assess how the team behaves under adversity. Domain expertise alone is insufficient; we need execution capability and capital stewardship.

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Valuation & Return Modeling

We build independent DCF and comparable company analyses. For venture deals, we model multiple exit scenarios — strategic acquisition, IPO, or secondary sale — and require a credible path to a 3× or better return on our entry price before committing capital.

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Bear Case & Risk Mapping

We explicitly model the bear case: what does this investment look like if the market grows 50% slower, if a well-funded competitor enters, or if the founding CEO departs? We only invest where the bear case is survivable.

Evaluation Scorecard

Market Size $1B+ TAM; defensible niche preferred
Gross Margins 50%+ for software; 35%+ for others
LTV / CAC Ratio 3× minimum; 5×+ preferred
Revenue Growth 30%+ YoY at seed/Series A stage
Competitive Position Clear moat; not "better but same"
Path to Liquidity Credible exit within 5–8 years
Target Return 3× base; 5×+ in venture cases
Entry Valuation Discounted to comparable public comps

What We Negotiate

Deal terms are as important as the deal itself. A great company at the wrong terms — or with inadequate protections — can still produce a poor investment outcome.

Valuation

Pre-Money Valuation & Dilution Protection

We negotiate valuations anchored to independent analysis, not the last round or founder expectations. We also seek anti-dilution provisions — preferably weighted-average broad-based — to protect against down rounds.

Economics

Liquidation Preference & Participation Rights

We negotiate for participating preferred shares with a 1× non-participating preference as a minimum floor, escalating to participating with a cap in competitive situations. This ensures return of capital before common shares participate in proceeds.

Governance

Board Representation & Information Rights

For meaningful check sizes we negotiate board observer seats or full board representation. At minimum, we require quarterly financials, annual audited statements, and immediate notification of material events.

Liquidity

Pro-Rata Rights & Co-Investment

Pro-rata rights allow us to maintain our ownership percentage in future rounds by investing our proportional share. We negotiate these rights in early rounds to preserve upside in breakout companies.

Protection

Drag-Along, Tag-Along & ROFR

Tag-along rights ensure we can participate in any sale on the same terms as major shareholders. Right of first refusal provisions give us the ability to acquire shares before they transfer to unknown third parties.

Structure

Tax Structuring at the Deal Level

We work to structure investments as QSBS-eligible C-corp shares wherever applicable, time closings relative to the tax calendar, and — in growth equity and buyout contexts — negotiate for deal structures that allow for tax-efficient exit treatment.

Term Sheet Priorities

Liquidation Preference 1× non-participating minimum
Anti-Dilution Broad-based weighted average
Board Rights Observer or seat for lead checks
Information Rights Quarterly financials + annual audit
Pro-Rata Maintain ownership in future rounds
Tag-Along Equal treatment on any sale
QSBS Eligibility Structure for §1202 exclusion
Founder Vesting 4-yr cliff; re-vest on change of control

Our Due Diligence Process

We conduct comprehensive, independent diligence — not a cursory review of the deck. The process typically spans 4–8 weeks for meaningful check sizes.

1

Financial Audit & Quality of Earnings

We review historical financials, cohort data, and cash flow statements — and commission a quality of earnings analysis for growth equity and buyout transactions to verify the sustainability of reported EBITDA.

2

Customer Reference Calls

We speak directly to customers — including churned customers — to validate product-market fit, pricing power, and switching cost assumptions. Customer discovery is often the most revealing step.

3

Competitive Intelligence

We engage industry experts and former employees to map the competitive landscape with precision, test the management team's assertions, and identify threats that may not appear in a standard market study.

4

Legal & IP Review

We engage specialized counsel to review cap table cleanliness, IP ownership, key contracts, pending litigation, and regulatory status. In tech deals, we assess software IP defensibility and any open-source license exposures.

5

Management Background Verification

We conduct thorough background checks and reference calls with former colleagues, board members, and investors across prior ventures — not just the names provided by the company.

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Tax Structuring Assessment

Prior to closing, we assess QSBS eligibility, Opportunity Zone qualification, and any state tax considerations. For larger transactions, we may engage specialized tax counsel to structure the investment for maximum after-tax efficiency.

Diligence Checklist

3 Years Financials Audited where available
Cohort Analysis Retention, LTV by vintage
Cap Table Review Fully-diluted; option pool audit
Customer References 5+ including churned accounts
IP Ownership Assignment agreements; no liens
Key Man Dependencies Succession planning; retention plans
Regulatory Review Licenses, pending actions, compliance
QSBS Qualification C-corp; §1202 asset test; holding plan

Investment Philosophy

Disciplined, research-driven, and fully aligned with your long-term success.

Active Over Passive

We believe markets are inefficient enough that skilled active management can add meaningful value. Index funds guarantee average returns minus fees — and expose you to every overvalued security in the benchmark.

Our approach concentrates capital in high-conviction ideas selected through rigorous fundamental analysis, allowing us to avoid overpriced areas and focus on durable value creation.

Forward-Looking Analysis

Past performance and historical metrics tell us where a business has been, not where it is going. Our research emphasizes future earnings power, competitive dynamics, and industry evolution over rearward-looking statistical analysis.

This orientation has been particularly valuable in identifying private equity opportunities before companies reach public markets at stretched valuations.

Concentrated Conviction

We do not believe in over-diversification. While we maintain prudent risk limits, we concentrate portfolios in our best ideas rather than diluting returns with marginal holdings. Twenty great ideas beat one hundred mediocre ones.

Concentration requires deep research and genuine conviction — and has historically generated superior risk-adjusted returns for long-term investors who can tolerate periodic volatility.

Alignment & Transparency

Our fee structure is straightforward: we earn our fees on assets under management. When you grow, we grow. There are no hidden revenue-sharing arrangements, no soft-dollar agreements, and no incentive to recommend products that aren't in your best interest.

Every decision we make is documented, explained, and available for review. We believe transparency is the foundation of a lasting client relationship.

Important Disclosure: Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. The information provided on this website is for informational purposes only and does not constitute investment advice or a solicitation to purchase or sell any security or investment product.

Begin the Conversation

We work with a select number of clients to ensure personalized attention. We welcome inquiries from qualified investors who are seeking a genuinely different approach.

Contact Information

Reach us directly or use the inquiry form. Initial consultations are confidential and carry no obligation.

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Phone
949 422-0489
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Location
California (Serving clients nationally)

Verasion Asset Management is a registered investment adviser in the State of California. Registration does not imply a certain level of skill or training. We serve accredited investors seeking personalized, research-driven portfolio management.

Send an Inquiry

We respond to all inquiries within one business day. Your information is kept strictly confidential.