Robinhood Ventures Fund II, a closed-end fund formed by Robinhood to hold a portfolio of private growth companies, raised $200 million by offering 8.0 million shares at $25. At pricing, the total size of the fund is $225.5 million.
RC Note: Because RVII is a closed-end fund, it will be excluded from Renaissance Capital's IPO stats.
Robinhood Ventures Fund II plans to primarily invest in a diversified portfolio of early-stage and growth-stage private companies, with a focus on private companies that are current or previous participants in the Y Combinator startup accelerator program. The sales load is $1.125 per share (4.5%). The base management fee is calculated and payable quarterly at the annual rate of 2.00% of the Company’s Net Assets determined quarterly as of the end of each quarter. The incentive fee is based on capital gains and equals 20.00% of the realized capital gains on a cumulative basis from inception through the end of the fiscal year.
Robinhood's other closed-end fund Robinhood Ventures Fund I (RVI), which holds a small portfolio of larger tech unicorns, went public this past March and has returned 15% since its listing.
The Menlo Park, CA-based fund will trade on the NYSE under the symbol RVII. Goldman Sachs, Citi, J.P. Morgan, UBS Investment Bank, and Wells Fargo Securities acted as joint bookrunners on the deal.
