Key Takeaways
- Robinhood needs to open up non-public fairness–type investing to retail merchants through a listed closed-end fund.
- The fund follows Robinhood’s earlier growth into non-public tokenized shares and plans to listing RVI shares on the NYSE.
American fintech firm Robinhood Markets has filed an preliminary registration assertion with the SEC to launch Robinhood Ventures Fund I (RVI), a closed-end fund that targets traders searching for non-public market publicity, the corporate stated Monday.
The fund will deal with investing in high-growth non-public firms throughout numerous industries. As soon as accredited by the SEC, retail traders should buy RVI shares to realize oblique entry to these companies.
In keeping with the corporate, the variety of publicly traded firms within the US fell roughly 43% to round 4,000 between 2000 and 2024. In the meantime, the estimated worth of personal companies grew to over $10 trillion.
With the transfer, Robinhood goals to bridge the hole created by declining public market listings and the expansion of personal firms that stay out of attain for on a regular basis traders.
“For many years, rich folks and establishments have invested in non-public firms whereas retail traders have been unfairly locked out,” stated Robinhood Chairman and CEO Vlad Tenev. “With Robinhood Ventures, on a regular basis folks will be capable to spend money on alternatives as soon as reserved for the elite.”
The fund follows Robinhood’s earlier growth into non-public markets by way of its launch of personal tokenized shares within the EU.
RVI shares are deliberate to commerce on the NYSE and will probably be out there for buy by way of brokerages, together with Robinhood Monetary LLC.
