Cathie Wood Launches ARK Venture Fund to Invest In Private Companies
Cathie Wood, Founder, CEO, and CIO of ARK Invest, and online investment platform Titan partnered to launch the actively managed ARK Venture Fund.
The new Fund aims to democratize venture capital by providing all market participants access to innovative organizations in the private and public markets with a minimum investment of $500. The fund is targeting 70% private companies and 30% public companies.
The ARK Venture Fund is an interval fund, which is structured to give investors less control over how and when they can withdraw their money. ARK’s fund plans to offer quarterly redemptions capped at 5% of the fund’s net asset value, according to Maximilian Friedrich, a member of the ARK Venture Investment Committee.
The Fund will charge a management fee of 2.75%. The total expense ratio of the Fund is estimated to be 4.22%.
Ark’s flagship Innovation Fund (ARKK) has had a tumultuous year as the valuations of many of Wood’s disruptive companies have collapsed amid an unfriendly environment of rising interest rates. The Fund is down 60% this year and nearly 70% from its 52-week high in last November.
