A new fund that allows investment in private tech firms like SpaceX and OpenAI has seen its market value surge as much as 818% in 2 weeks

A female SpaceX employee is suing the company for discrimination and retaliation.Eva Marie Uzcategui

  • The Destiny Tech100 fund has soared as much as 818% since its debut two weeks ago.

  • The closed-end fund offers investors access to companies that have yet to go public.

  • Some of the top holdings in the fund include SpaceX, Epic Games, and OpenAI.

A new closed-end fund that offers investors access to private companies has soared over the past two weeks.

The Destiny Tech100 fund has seen its price soar as much as 818% since its listing on the New York Stock Exchange took place on March 26, giving it a market value of $825 million. The fund spiked 126% at intraday highs on Friday, hitting $75.79. It originally opened for trading at $8.25 in late March.

The fund, which trades under the ticker symbol “DXYZ,” seeks to invest in private high-growth tech companies that most investors don’t have access to, unless they’re accredited.

So far, the closed-end fund owns stakes in 23 companies, though it is ultimately targeting 100 companies to be held in the fund.

Destiny said its fund offers investors access to companies that can print eye-popping returns before they go public. Traditionally, those gains have been limited to venture capital investors, while public market investors have had limited access to those gains.

“For many companies at the pre-IPO stage, there is a real opportunity to achieve a 10x-50x return,” Destiny says on its website.

By far the largest position in the fund is Elon Musk’s SpaceX, with a 34.6% stake. The fund’s SpaceX stake is worth about $18.4 million as of December 31, according to Destiny’s 2023 annual report.

Other stakes in the company include Epic Games at 4%, OpenAI at 3.8%, and Chime at 1.9%.

While the closed-end fund offers every-day investors access to private companies that would have been difficult to invest in, it comes at a steep price, with the Destiny Tech100 fund charging an annual management fee of 2.5%.

Read the original article on Business Insider

Source link