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Robinhood Ventures Fund II prices $200 million IPO for private-company exposure
The fund will start trading Aug. 13 on the NYSE under ticker RVII, with a total size of $225.5 million before fees, potentially rising to $255.5 million if underwriters exercise an option.
Robinhood Ventures Fund II, a business development company designed to give retail investors exposure to private companies, priced 8 million common shares at $25 each, creating a $200 million gross initial public offering, according to The Defiant.
The fund is expected to begin trading on the New York Stock Exchange on Aug. 13 under ticker RVII, and the offering is expected to close Aug. 14, subject to customary conditions. Robinhood said the total size is $225.5 million before sales load and offering expenses, which could increase to $255.5 million if underwriters exercise a 30-day option to buy an additional 1.2 million shares at the offering price, minus discounts and commissions.
Robinhood said some of the fund’s exposure may be held through illiquid private vehicles that can involve capital calls and additional fees. It also disclosed that RVII is a closed-end fund that issues a fixed number of shares and does not redeem them on shareholder request.
The adviser, Robinhood Ventures, charges a 2% annual base management fee on net assets, paid quarterly, and a 20% annual incentive fee based on cumulative realized capital gains after realized losses, unrealized depreciation, and previously paid incentive fees. The vehicle may use leverage, private vehicles in the portfolio may impose additional fees, and while exchange trading can provide a potential exit route, an active market is not guaranteed, with shares possibly trading above or below net asset value.