As a startup founder, early employee, or investor, you’ve made big bets before – and they’ve paid off. But for some of you, those bets have resulted in overexposure to one company. Diversification, while necessary, would result in capital gains tax. Instead of selling outright, you’re looking for an option that allows you to reduce risk while maintaining some market exposure.
Separately, you’re interested in private jet access. While you’ve accumulated enough wealth to fly private, you’ve found the process of scheduling on-demand charter flights to be opaque. You explored traditional or fractional ownership models, but the cost benefit didn’t align with your needs. You still want the flexibility and freedom of flying private, but some or all of these factors have kept you from committing.
A New Standard
Craft Pod is completely changing the private aviation ownership model, and we’re looking for bold, forward-thinking individuals who want to diversify their investments, gain access to private flights at cost, and experience the potential upside that comes from fractional ownership of a charter aircraft fleet.
We built Craft Pods for you – the entrepreneur who values efficiency but doesn’t want to sacrifice quality. The investor who has made big bets, but only after thorough analysis and evaluation. The founder who wants to diversify concentrated stock holdings without triggering capital gains tax. All of you have experienced tremendous upside from getting in on the ground floor and taking a company to new heights. You understand the high risk, high reward tradeoff, and you see the same potential in private aviation.
How Craft Works
Craft Pods are an entirely new structure for fractional aircraft ownership. You contribute cash or stock to our diversified exchange fund, and in return, you get an ownership interest in both a diversified portfolio of securities and a private charter business operated by experts in the field.
As a Craft Pod member, you benefit from streamlined charter flight access at cost, without the high margins of other companies. You also get diversified investments aligned with the S&P 500, plus the revenue from the charter business – because when the planes are not being used by Craft Pod members, they’re chartered out. All of this adds up to an investment that is far different from traditional fractional jet ownership, and more compelling than standard exchange funds, which typically use real estate as a hard asset.
What is a Diversified Exchange Fund?
Craft’s unique ownership structure is underpinned by a diversified exchange fund that uses aircraft instead of real estate as an illiquid asset. Since exchange funds must keep at least 20% of assets in qualifying illiquid holdings to preserve tax-deferral status under Section 721, Craft satisfies this requirement with a fleet of business jets that members can use for private flights.
Rather than selling your stock and realizing a taxable gain, you contribute shares or cash into Craft Pod’s exchange fund. Because this contribution qualifies as a tax-deferred exchange under IRS Sections 351 and 721, the capital gains on your contributed stock are deferred, not realized. This allows you to diversify your holdings without immediately triggering capital gains tax.
Modern, Transparent Jet Access
At Craft, we strive for transparency in everything we do. Our guiding principle is to provide white-glove service in a cost-efficient structure so that you get a return on your investment. You won’t find the monthly management fees or high maintenance costs that are standard with other fractional private aircraft ownership models. Rather, Craft Pod relies on two standard fees: a one-time onboarding fee and an annual management fee. Members are billed at our published occupied-hour rate for flights; if actual costs come in lower, the surplus is redistributed as partnership profit, lowering the effective cost per hour.
Trusted Expertise
The Craft team has decades of proven experience across both aviation and finance. From operations at NetJets and Wheels Up to investment strategy at Goldman Sachs and Citizens, along with our pilots and FAA-certified dispatchers, we have the expertise to run a successful charter aviation business and invest your money responsibly. Craft has been operating charter flights for the past six years; the company holds an FAA Part 135 certificate and maintains an ARGUS Platinum safety rating. When you join a Craft Pod, you are investing in a proven business – one that now works for you.
Ready to Board?
Try our Craft Pod investment calculator to find out if membership is right for you. Or you can schedule a meeting with us to learn more.
We look forward to welcoming you to Craft Pod.
