Robinhood Markets plans to raise $1 billion through a closed-end fund IPO, offering US retail investors access to private companies before they go public. Orders begin on February 17, with trading starting February 26. The fund will hold at least 10 firms, limiting any single position to under 20% of assets. The move follows increased demand for pre-IPO shares, though similar funds have sometimes traded below their portfolio value.
On Wednesday, Robinhood Markets revealed its plans to raise $1 billion in an initial public offering of a closed-end fund. This allows US retail investors to invest in private companies before they go public.
The sale of shares will begin on February 17, with trading set to start on February 26, according to a regulatory filing review. Demand for pre-IPO shares has increased, making such funds appealing to investors.
The new fund is set to invest in at least 10 private companies, with no single company holding over 20% of assets. This strategy is designed to prevent concentration risk and allow diversification.
The company’s CFO, Shiv Verma, stated that the company is set to provide payouts only after the portfolio has produced excess funds. Goldman Sachs Group Inc. is leading the transaction.
This development follows other crypto-linked companies pursuing public listings. Kraken filed for a US IPO late last year.
Ledger also said it is ready to move forward with a potential IPO that could value it at around $4 billion. Hardware wallet maker BitGo Holdings recently went public as well.
BitGo raised nearly $213 million when it issued shares for $18, giving it a valuation of around $2.08 billion. The company is now listed on the New York Stock Exchange under the ticker BTGO.
