Robinhood Markets plans to list its second venture fund, Robinhood Ventures Fund II (RVII), on the New York Stock Exchange on August 13, with an expected initial price of $25 per share.
RVII is structured as a business development company (BDC), a form of closed-end investment vehicle. The fund's portfolio presently includes stakes in 80 private companies. Its investment focus is on early-stage startups that are current or former participants in the Y Combinator accelerator program or whose founders participated in that program. The filing states that additional portfolio companies are expected to be added over time.
Retail access to the IPO will be available through Robinhood Financial's platform, where eligible customers can request allocations of RVII shares. Registered investment advisers operating on the TradePMR Fusion platform may also seek allocations for their clients. The window to request IPO shares is expected to close on August 12.
On the fee side, the fund carries a base management fee equal to 2.00% per year of net assets, calculated and payable quarterly. In addition, RVII will pay an incentive fee of 20% of realized capital gains realized from inception through fiscal year-end, reduced by realized capital losses, unrealized capital depreciation, and previously paid incentive fees, with that incentive fee payable annually.
Robinhood describes RVII as having no accreditation requirements or minimum investment amounts and characterizes the vehicle as offering daily liquidity as a publicly traded fund. The fund's registration statement on Form N-2 has been filed with the Securities and Exchange Commission, but that registration has not yet become effective.
Separately, Robinhood has launched a Robinhood Employee Fund that allows eligible employees to invest in a vehicle with exposure to Robinhood Ventures funds, including RVII.
The press release accompanying the listing plan underscores that an investment in RVII is speculative and involves a high degree of risk, including the potential for substantial loss of capital. The release also notes that Y Combinator does not sponsor, endorse, or promote the fund.
Investors and advisers considering participation have a short window to request allocations ahead of the expected close of requests on August 12 and the anticipated NYSE listing on August 13.