Craft Pod is designed with a 7-year term in mind. Your investment is intended to stay in place for about seven years. This timeline allows the strategy (including aircraft operations and portfolio growth) to unfold and aligns with tax planning goals.
When the 7-year term approaches its end, Craft holds a recap (recapitalization) event. In plain terms, this is a refresh or rollover of the fund’s structure. Instead of just liquidating everything and closing the fund, Craft gives investors options at the 7-year mark.
What happens at the recap?
You’ll usually have a choice:
Exit the fund — redeem your share and cash out.
or
Stay invested — Craft can roll your investment into a new fund or successor vehicle as a tax-free rollover. This lets you keep deferring taxes and maintain your stake in the assets (now with a new 7-year horizon).
The recap may also bring in new investors to buy out those who choose to exit. This keeps the aircraft and portfolio intact, refreshing ownership without having to sell assets at bad prices.
Why does Craft use a recap?
This strategy lets Craft offer a 7-year term which is shorter and more flexible than traditional exchange funds (which often require 7+ years). But you still get the tax advantages.
You can think of the 7-year mark as a checkpoint where you decide what’s next: cash out, roll over into a new pod, or some mix of both.
It’s designed to be investor-friendly, giving you liquidity and choice at five years, instead of forcing you to wait much longer or just shutting the fund down.
Please read our full disclosures before making an investment decision.