> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/instrument-types/fund-linked-nav-linked-notes.md).

# Fund-Linked / NAV-Linked Notes

Fund-linked notes (also referred to as NAV-linked notes) are instruments whose value tracks the net asset value of an existing, independently governed fund vehicle.

**Structure.** The SubFund acquires a position (units, shares, or a contractual participation) in an existing fund — such as a Guernsey PCC, a Cayman fund, a Luxembourg RAIF, or any other regulated or unregulated fund vehicle. The SubFund issues notes to investors. The notes' value is linked to the NAV of the underlying fund, as reported by that fund's independent administrator or auditor.

**Return mechanism.** Note value moves in line with the NAV of the underlying fund. Distributions (if any) from the underlying fund are passed through to noteholders according to the SubFund's distribution waterfall.

**Key governance feature.** The underlying fund retains its own governance, custody, administration, and audit. T-Blocks does not alter the fund's investment strategy, operational mechanics, or service provider framework. The SubFund serves purely as a structuring and distribution layer — converting the fund's performance into a Luxembourg-governed, ISIN-eligible, dual-rail-distributable instrument.

**Typical use cases.** Existing hedge funds, private equity funds, or real estate funds seeking wider distribution to international investors through digital and traditional channels without restructuring their existing governance.