TLDR:
- Robinhood targets $1B IPO with RVI fund listing on NYSE Feb 26.
- RVI fund gives retail access to private tech companies like Databricks, Revolut.
- Robinhood Ventures Fund I aims for $1B raise, pricing 40M shares at $25.
- No accreditation required for Robinhood’s new venture fund offering.
- Robinhood lowers fees for retail traders in closed-end fund debut.
Robinhood Markets, Inc. (HOOD) closed at $75.44, down $0.53 or 0.70%, while shares slipped to $75.30 in overnight trading. The company now plans to list Robinhood Ventures Fund I on the New York Stock Exchange. The closed-end fund will target $1 billion and offer retail access to private technology companies.
Venture Fund I Targets $1 Billion IPO
Robinhood will list Robinhood Ventures Fund I under the ticker RVI on the NYSE. The fund plans to price 40 million shares at $25 each. As a result, the offering would raise about $1 billion if fully subscribed.
The structure uses a closed-end format with a fixed share count. Market supply and demand will determine trading prices after listing. Goldman Sachs will act as the lead underwriter for the transaction scheduled for February 26.
Robinhood stated that customers can request IPO shares through its IPO Access platform. After listing, holders can buy and sell shares daily on the exchange. The company also confirmed that other brokerages will offer access following the debut.
Fund Portfolio Focuses on Late-Stage Private Firms
Robinhood Ventures Fund I will hold at least 10 private companies. However, the structure limits any single holding to 20% of assets. The portfolio already includes stakes in Databricks, Oura Health, and Revolut.
The fund entered an agreement to acquire shares of Stripe after the IPO closes. The company also referenced exposure to firms such as Airwallex, Boom, Mercor, and Ramp. These companies operate across fintech, artificial intelligence, and consumer technology sectors.
Private companies have remained unlisted for longer periods in recent years. Consequently, retail traders have faced limited access to late-stage growth rounds. Robinhood aims to address that gap through a publicly traded vehicle.
Fee Structure Adjusted to Attract Retail Demand
Robinhood Ventures will charge an annual management fee of 2.00% of net assets. The adviser will reduce that fee to 1.00% for the first six months. The fund will not charge any performance-based carry fees.
Traditional private equity funds often impose accreditation standards and minimum commitments. In contrast, RVI will not require accreditation or investment minimums. The fund will also provide daily liquidity through exchange trading.
Closed-end funds can trade at discounts or premiums to net asset value. Market sentiment may influence price swings after listing. Robinhood continues to diversify revenue beyond transaction-based trading as it expands into asset management.
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