Meta Platforms is offering to buy a minority stake in funds of the venture firm founded by two of its key artificial intelligence recruits, giving limited partners in the funds a chance for a quick payday.

Nat Friedman and Daniel Gross helmed NFDG, a venture firm they created a few years ago, before agreeing to join Meta. As they step back from NFDG, Meta is proposing to buy out a minority stake in its funds from limited partners via a tender offer, according to people familiar with the situation.

A Meta representative declined to comment on the fund details. 

LPs could cash out at the current net asset value, said people familiar with the situation. That is unusual in today’s markets, where secondary transactions often come at a discount. LPs can choose how much they will sell in the tender offer, the people said. In aggregate, Meta could acquire as much as 49% of NFDG’s holdings.

About half of NFDG’s first fund of about $1.1 billion, raised in 2023, has been invested so far, one person said. Those investments have appreciated about four times in value to date, the person said.

As an LP, Meta won’t have information rights or governance rights in the underlying startup portfolio, another person said. That provision aims to alleviate any concerns among NFDG’s portfolio companies about information-sharing with Meta. Also, Meta won’t show up on the so-called cap tables that detail ownership of portfolio companies, because as a limited partner in the NFDG funds it wouldn’t be a direct holder of their shares, the person said.

NFDG won’t make net new investments. Its existing portfolio will be managed by NFDG’s remaining team. The firm is creating a management company advisory group that will include John Collison, co-founder of payments company Stripe, and Matt Huang, co-founder and managing partner of crypto venture firm Paradigm. They will advise on managing the existing portfolio.

NFDG was in the process of raising about $1.5 billion for a second fund this year, one of the people said. LPs would be released from their commitments to the second fund, the person said.

NFDG had invested in companies including Safe Superintelligence, which saw its valuation climb to $30 billion this year from $5 billion in its prior round of financing. Gross is a co-founder of Safe Superintelligence. Gross left the company June 29, according to a post on X by Ilya Sutskever, Safe’s co-founder. Sutskever said he is now Safe’s chief executive. 

NFDG’s portfolio includes ElevenLabs, an AI voice platform; Granola, which makes software for meeting transcribing; and accounting software company Basis. 

Meta Chief Executive Mark Zuckerberg said earlier this week that Friedman, former chief executive at GitHub, will lead AI products. Gross, formerly a partner at Y Combinator, has joined Meta’s Superintelligence Labs, the tech company said. Meta has also brought on Alexandr Wang, former CEO of Scale, as chief AI officer. 

On Thursday, Friedman said on X that he started work at Meta. “Will you stop investing?” someone asked on X. “Yes,” Friedman replied.