A new fund that allows investments in private technology companies such as SpaceX and OpenAI has seen its market value soar 818% in two weeks

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

  • The Destiny Tech100 fund has soared 818% since its launch two weeks ago.

  • Closed-end funds provide investors with the opportunity to invest in companies that have not yet been publicly traded.

  • Some of the fund’s key holdings include SpaceX, Epic Games and OpenAI.

Shares of new closed-end funds that offer investors the chance to invest in private companies have soared over the past two weeks.

Since the Destiny Tech100 Fund was listed on the New York Stock Exchange on March 26, its stock price has soared 818%, with a market value of US$825 million. The intraday high on Friday soared 126%, setting a record high. $75.79. It initially opened trading at $8.25 in late March.

The fund, which trades under the symbol “DXYZ,” seeks to invest in private high-growth technology companies that are inaccessible to most investors unless they are accredited.

So far, the closed-end fund holds shares in 23 companies, but the ultimate goal is to own 100 companies.

Destiny said its funds offer investors the opportunity to invest in companies that can earn eye-popping returns before going public. Traditionally, these benefits have been limited to venture capital investors, with public market investors having limited access to these benefits.

“For many companies in the pre-IPO stage, this is a real opportunity to achieve returns of 10x to 50x,” Destiny said on its website.

As of now, the fund’s largest shareholding is Elon Musk’s SpaceX, with a shareholding of 34.6%. According to Destiny’s 2023 annual report, as of December 31, the fund’s SpaceX shares were worth approximately $18.4 million.

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

While this closed-end fund offers everyday investors the chance to invest in otherwise hard-to-invest private companies, it comes at a steep price, with the Destiny Tech100 Fund charging an annual management fee of 2.5%.

Read the original article business insider

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