Robinhood Launches $1 Billion Closed-End Fund Offering 35 Million Shares at $25
Robinhood plans a $1 billion IPO of its closed-end Ventures Fund I, offering 35 million shares at $25 with 5 million reserved for customers and targeting trading from Feb. 26. The fund will invest in at least ten private companies, cap holdings at 20%, and cut 2% fee to 1% for six months.
1. IPO Structure
Robinhood is offering 35 million shares of its closed-end Robinhood Ventures Fund I at $25 each, with 5 million shares reserved for customers and trading slated to begin on Feb. 26 under Goldman Sachs’ lead management.
2. Investment Strategy
The fund plans to acquire stakes in at least ten private companies, capping any single holding at 20% of assets. Current portfolio companies include Databricks, Oura Health and Revolut, with an agreement to invest in Stripe.
3. Fee and Distribution Terms
The fund will charge a 2% management fee, cut to 1% for the first six months, with no performance fee or minimum investment requirement. It will not pay regular dividends, distributing cash only if excess liquidity builds.
4. Private Markets Context
Closed-end funds have provided one of the few routes for retail investors to access pre-IPO growth as startups stay private longer. This marks the first such fund IPO since 2022, reflecting muted issuance and renewed appetite for private-market exposure.