Dan Ives to Launch $200 Million Closed-End Fund Targeting Private AI Companies

Veteran technology analyst Dan Ives is launching a new closed-end fund designed to give public market investors exposure to private artificial intelligence startups. The fund, named Ives Ultra AI Opportunities Inc., aims to raise $200 million in an initial public offering, according to a report from Bloomberg.

Fund Strategy and Structure

According to a filing with the U.S. Securities and Exchange Commission, the fund will focus its investments on equity and equity-related securities of private, late-stage AI companies based in the United States. The vehicle will be advised by Ives Ultra Capital Management LLC, where Ives, who recently left his role as Wedbush's global head of technology research to co-found investment bank Yorkville Ives & Co., is on the board.

This launch places Ives among a growing number of firms creating publicly listed vehicles, often called permanent capital vehicles, to invest in the private markets. Similar funds have recently been listed by companies including Robinhood Markets Inc., Powerlaw Corp., and Fundrise Innovation Fund, all aiming to provide more liquid access to traditionally illiquid venture capital-style assets.

Addressing a Key Investor Concern

Ad

A notable feature of the Ives Ultra fund is a provision designed to address a common drawback of closed-end funds, which often trade at a persistent discount to their net asset value (NAV). The fund will allow investors to tender their shares at 100% of NAV within the first year after the IPO.

This mechanism provides an early exit opportunity for initial investors at the fund's underlying value, potentially mitigating the risk of a trading discount. Any unredeemed capital can then be invested by the fund's managers.

IPO Timeline

The IPO is being managed by Cohen & Co. and is expected to stop taking orders on September 29, with pricing set to occur after the market closes that day, Bloomberg reported. The shares are anticipated to begin trading on the New York Stock Exchange on September 30 under the ticker symbol IVAI.