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The Destiny Tech 100 fund has soared 818% since its debut two weeks ago.
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Closed-end funds give investors access to companies that are not yet publicly traded.
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The fund’s top holdings include SpaceX, Epic Games, and OpenAI.
New closed-end funds that give investors access to private companies have soared over the past two weeks.
The Destiny Tech100 fund has increased in price by 818% since it was listed on the New York Stock Exchange on March 26, giving it a market value of $825 million. The fund soared 126% to an intraday high of $75.79 on Friday. It originally started 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 are inaccessible to most investors unless they are accredited.
So far, the closed-end fund holds shares in 23 companies, but the goal is to eventually have 100 companies in the fund.
Destiny said the fund provides investors with access to companies that can generate impressive returns before going public. Traditionally, these benefits have been limited to venture capital investors, and public market investors have had limited access to them.
“For many companies in the pre-IPO stage, there is a real opportunity to achieve returns of 10x to 50x,” Destiny says on its website.
By far the largest holding in the fund is Elon Musk’s SpaceX, with a 34.6% stake. The fund’s SpaceX shares were worth about $18.4 million as of Dec. 31, according to Destiny’s 2023 annual report.
The company’s other holdings include Epic Games at 4%, OpenAI at 3.8%, and Chime at 1.9%.
While this closed-end fund provides investors with day-to-day access to private companies that would otherwise be difficult to invest in, the Destiny Tech100 fund has a high price tag, including a 2.5% annual management fee. be.
Read the original article on Business Insider
