Pre-IPO Index Fund Update
We recently received some good news from our Pre-IPO Index Fund manager, Aaron Dillon.
As those of you who took advantage of this offering know, this fund is comprised of Aaron's top 10 pre-IPO private companies as ranked by secondary market valuation. One of the holdings, CoreWeave, went public in March of this year.
The cost basis on the shares is $49.27 on Dec 6, 2024, and was $143.04 / share on July 16, for a 190.32% cumulative return, and 312.91% annualized return.
Obviously a great outcome for the holders of the index.
If you are a holder of this fund, look for communication from us regarding your options. The bottom line is that you can either keep the shares, or have them sold for cash.
At the risk of painting too rosy of a picture, our other pre-ipo company-specific funds, SpaceX and Open AI, are also experiencing significant valuation increases. We won't realize any gains until there is a liquidity event (like an IPO or private sale), but these appear to be on track.
As one of 45 select RIA firms in the US that work with Aaron, we are optimistic about future opportunities, and there are a few closing at the end of September that we will be providing more information on shortly.
We firmly believe in the power of incorporating private assets (private equity, lending, real estate, etc.) in portfolios as a way to provide higher levels of diversification, risk moderation, and added performance. In my opinion, we are at the early stages of a tremendous change in the private wealth management world.
Please reach out to me directly if you would like to discuss the appropriateness of private assets in your porfolio. You can also schedule a discussion here: BOOK A TIME
Best regards,
Doug Kinsey, CFP, CIMA
Chief Investment Officer
Please be advised that investments in private companies should be considered speculative in nature and subject to loss of all or part of your principal. They should only be utilized as part of a diversified portfolio and considered long-term in nature. In addition, private assets are subject to illiquidity constraints, as they cannot easily be sold or redeemed prior to a "liquidity event" such as the conclusion of a fund, or the sale of a private company, either through public or private transactions. Nothing in this blog post should be considered as a guarantee of prediction of future performance.