Cathie Wood's Private Equity Fund Hits $1 Billion in Assets as Investors Clamor for SpaceX
Written by Jennifer Saibil for The Motley Fool -> The Ark Venture Fund's assets have increased nearly 40% since the SpaceX IPO was announced. The fund provides exposure to several high-profile companies that aren't public. It's an interval fund, which could be risky. Private
The Ark Venture Fund's assets have increased nearly 40% since the SpaceX IPO was announced.
The fund provides exposure to several high-profile companies that aren't public.
Private equity, once the domain of the uber-rich, has become more accessible to retail investors over the last few years. Investing in general has become easier and more democratic as trades have become fee-free and can be accomplished in a second with the click of a button.
Some investment companies tout their access to private equity through funds that the retail investor can buy into. SoFi Technologies , for example, provides access to several private equity funds, including Cathie Wood's Ark Venture Fund (NASDAQMUTFUND: ARKVX) , which opened in 2022. Ark says that its purpose is to " open the doors of one of the world's most exclusive asset classes to every investor, not just the privileged few."
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While these funds have become popular ways to invest in private companies, the upcoming SpaceX initial public offering (IPO) has investors stampeding to find all sorts of ways to access it before it goes public, and Ark Invest's fund just hit $1 billion in assets under management.
The Venture fund is available for direct investing through SoFi or wealth management firm Titan and through wealth advisory programs on different platforms. It invests in private equity and some public companies, and its largest position is in SpaceX, which accounts for 11% of its weight. Other high-profile companies it's invested in include OpenAI, Anthropic, and Databricks.
Assets under management reached $1 billion at the end of May, up from $711 million at the end of March, before SpaceX announced it would go public. That means it expanded by nearly 40% over the past two months as investors race to get in before the initial public offering.
