Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Dan Ivesis launching a closed-end fund to invest in equity and equity-related securities of private late-stage AI startups in the U.S., a regulatoryfiling with the U.S. Securities and Exchange Commission revealed.
Ives Ulta AI Opportunities Inc. is looking to raise approximately $200 million in an IPO and is expected to price on Sept. 29. Cohen & Co. is working on the fund, sources familiar with the deal told Bloomberg.
Ives Ultra Capital Management is serving as the fund’s investment manager, with Ives on its board. Ives previously led global technology research at Wedbush before departing the firm in July to launch his own investment bank, Yorkville Ives & Co.
Read Also:OpenAI CEO Sam Altman to Pitch Global AI Standards as Safety Debate Intensifies
To help limit the discount that closed-end funds can sometimes trade relative to their underlying assets, the fund plans to offer shareholders a tender option during the first year after going public.
Investors can sell shares back at 100% of the fund’s net asset value. Any shares that are not tendered will leave the fund with cash that Ives Ultra can put to work in new investments, Bloomberg noted.
Shares will begin trading on Sept. 30 under the ticker symbol IVAI, and the price will be set after the market closes on Sept. 29.
Private market investing has increasingly moved towards public markets this year, with several permanent capital vehicles launching to hold stakes in privately owned companies.
Robinhood Markets Inc. introduced two funds, while Powerlaw Corp. and the Fundrise Innovation Fund have also entered the market, allowing investors another avenue to gain exposure to private technology businesses without directly holding private company shares.
Read Also:Apollo’s $26 Billion Private Credit Fund Faces Another Rush for Exits
This article Dan Ives Launches $200M Fund To Back AI Startups originally appeared on Benzinga.com
