Has the initial public offering gone (IPO) private? Today a number of factors are contributing to companies no-longer going public, or being much larger when they IPO. Today public companies are 50% older and 4 times larger than they were 20 years ago; while the number of S&P Index companies growing at 20% or more annually has been reduced by 50%. Retail investors have effectively been cut out of these growth opportunities and the historically attractive returns many late-stage venture-backed companies have provided to investors. Accordng to Reuters, “The Pre-IPO market (late stage private companies) has become the IPO market of the past, but it’s only available to investors such as venture capital firms, mutual funds, and hedge funds able to put up large amounts of money” Reuters. FNEX Ventures Fund (XFNEX) aims to change that, and provide the retail investor access to this market, once again.
For a minimum investment of $2,500, XFNEX, a closed-end interval fund, offers individuals, family offices, and institutions an attractive means to access the venture-backed asset class. Ask your advisor if you should allocate part of your portfolio to an investment strategy focusing on high-growth venture backed companies.
FNEX Ventures Fund (XFNEX) will invest in the FNEX “Target List.” This list is made up of trending, venture backed companies, evidencing growth, capital appreciation and brand recognition. XFNEX will identify leading venture capital firms and follow investing trends into these companies. XFNEX will actively manage the positions taking into consideration competition, performance, vertical dynamics, and market conditions. The Fund seeks to achieve its investment objective by investing primarily in the equity securities (e.g., common and/or preferred stock, or convertible debt securities) of certain privately operating, venture-backed, speculative, growth companies, selected by the Advisor for the FNEX Target List.
Investment in the Fund involves substantial risks and is highly speculative. There is no guarantee that the Fund will achieve its investment objective. The Fund is not appropriate for investors who cannot bear the risk of loss of all or part of their investment or who may need to liquidate all or part of their investment in a short time frame.