# Section Partners

Section Partners is an Asset Manager based in Palo Alto, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Palo Alto, United States
- **Region:** North America
- **Address:** Palo Alto, CA, United States
- **Founded:** 2016
- **Assets under management:** Undisclosed
- **Website:** www.sectionpartners.com

## Regulatory record

- **CRD number:** 314618
- **SEC file number:** 801-121934
- **Registration status:** Registered
- **Reports private funds:** Yes
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/314618

## About

Section Partners provides personal financing solutions for founders, executives, and stockholders of venture-backed technology companies. Their offerings include structured financing such as the Section Partners Financing Contract (SPFC) and stock option exercise financing, as well as secondary and primary capital. They are a Registered Investment Advisor that raises dedicated funds from limited partners to invest in leading technology companies and help clients achieve personal liquidity goals.

## Sectors

- Enterprise Software
- FinTech
- AI/ML
- Digital Health

## Offices

- New York, NY, United States

## People

- Dave Crowder — Founder, Co-Managing Partner
- Solomon Lee — Co-Managing Partner
- Alli Murdoff — Partner
- Ryan Randall — CFO, CCO, Partner
- Zane Veater — Principal

## Questions

### How is Section Partners different from a venture capital firm that buys secondary shares?

Section Partners does not primarily buy shares in the secondary market; it extends non-recourse, structured financing directly to individuals. Repayment is contingent on a future exit event, and the collateral is limited to the pledged shares, not the individual's other assets. This preserves the shareholder's full ownership, voting rights, and upside, distinguishing it from a secondary direct-buyer model.

### What is a Section Partners Financing Contract (SPFC) and how does it work?

The SPFC is Section Partners' proprietary structured financing instrument. It provides immediate liquidity to a shareholder, who pledges a portion of their shares as the sole collateral. No personal guarantee is required, and repayment — along with the firm's return — is due only upon a full or partial exit of the underlying company. The firm states this model generates liquidity without diluting the shareholder's ownership stake or voting control.

### Does Section Partners invest in companies directly, or only in individuals?

While the core business is personal financing, Section Partners also provides primary capital as a supplement to a company's next funding round. In that capacity, it acts as a direct institutional investor into the enterprise, in addition to its individual-level financing. However, the firm's public materials emphasize that its bread-and-butter is the structured financing and option-exercise capital provided to individual shareholders.

### Is Section Partners a registered investment firm, and who backs its funds?

Yes. Section Partners is a Registered Investment Advisor. It raises dedicated funds from limited partners that include institutional investors, family offices, and high-net-worth individuals, as disclosed on the firm's website. These funds are then deployed through the firm's structured financing, secondary, and primary capital programs.

### What types of companies does Section Partners work with?

Section Partners focuses exclusively on venture-backed technology companies. Publicly referenced portfolio companies span enterprise software (Reltio), AI/ML (Cerebras, WorkFusion), digital health (Modern Animal), and vertical SaaS. The common thread is a company with significant venture backing and a shareholder base seeking personal liquidity.

### When is the right time for a founder or executive to approach Section Partners versus selling shares in a secondary tender?

According to the firm, its financing is the preferred alternative when a shareholder wants immediate liquidity but does not want to permanently surrender ownership or voting rights. Secondary tenders are considered appropriate when the shareholder seeks pure diversification, especially if they can capture Qualified Small Business Stock (QSBS) tax benefits. The two options can also be combined.

## Related profiles

- [Section 32](https://altss.com/profile/section-32)
- [Sectoral Asset Management](https://altss.com/profile/sectoral-asset-management)

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Last updated: 2026-08-11T15:08:04.536Z

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