Dan Ives is launching a $200 million closed-end fund to invest in late-stage AI startups, with an IPO set to price on September 29. The fund, Ives Ulta AI Opportunities Inc., aims to provide investors with exposure to private AI companies.
TL;DR
- Dan Ives launches $200M fund for late-stage AI startups, pricing on Sept. 29.
- Fund offers tender option to limit trading discounts, allowing investors to sell shares at net asset value.
- Move reflects a broader trend of private market investing shifting towards public markets.
What happened
Dan Ives is launching a closed-end fund, Ives Ulta AI Opportunities Inc., to invest in equity and equity-related securities of private late-stage AI startups in the U.S. The fund aims to raise approximately $200 million through an IPO, set to price on September 29, according to a regulatory filing with the U.S. Securities and Exchange Commission. Cohen & Co. is working on the fund, with Ives Ultra Capital Management serving as the investment manager and Ives on its board.
To mitigate potential trading discounts, the fund plans to offer shareholders a tender option during the first year post-IPO. Investors can sell shares back at 100% of the fund's net asset value. Un-tendered shares will leave the fund with cash for new investments, per Bloomberg. Shares will begin trading on September 30 under the ticker symbol IVAI, with the price set after the market closes on September 29.
Why it matters
This fund launch provides a new avenue for investors to gain exposure to private AI companies, which have seen significant growth and interest in recent years. The tender option aims to enhance investor confidence by limiting potential trading discounts, making the fund more attractive.
The move aligns with a broader trend in the private market, where several permanent capital vehicles have launched to hold stakes in privately owned companies. This shift allows investors to participate in the growth of private technology businesses without directly holding private company shares.
Key facts
- Fund name: Ives Ulta AI Opportunities Inc.
- Target raise: $200 million
- IPO pricing date: September 29
- Trading start date: September 30
- Ticker symbol: IVAI
- Investment manager: Ives Ultra Capital Management
- Tender option: Shareholders can sell shares at 100% of net asset value within the first year post-IPO
- Sources: Bloomberg, U.S. Securities and Exchange Commission filing
Context
Dan Ives previously led global technology research at Wedbush before departing in July to launch his own investment bank, Yorkville Ives & Co. His new fund reflects the increasing interest and investment in the AI sector, which has seen rapid growth and innovation in recent years.
The launch of this fund is part of a broader trend where private market investing is moving towards public markets. Other notable entrants include Robinhood Markets Inc., which introduced two funds, and Powerlaw Corp. and the Fundrise Innovation Fund, which have also entered the market to provide investors with exposure to private technology businesses.
