Dan Ives Launches $200M Closed-End Fund to Invest in Late-Stage AI Startups

Dan Ives Launches Closed-End Fund for Private AI Companies

Dan Ives is launching a closed-end fund designed to invest in late-stage AI startups, marking his latest move since departing Wedbush to establish his own investment bank. Ives Ultra AI Opportunities Inc. aims to raise $200 million through an IPO expected to price on Sept. 29, with shares beginning trading on the New York Stock Exchange on Sept. 30 under the ticker symbol IVAI1

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. The fund will focus on equity and equity-related securities of private AI companies in the United States, providing public market access to private technology companies that have historically been difficult for retail investors to reach.

Addressing Discount Risks with Innovative Tender Option

To tackle the persistent challenge of closed-end funds trading at discounts to their net asset value, Ives Ultra AI Opportunities Inc. has built in a unique safeguard. The fund plans to offer shareholders a tender option during the first year after going public, allowing investors to sell shares back at 100% of the fund's net asset value1

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. This mechanism addresses investor concerns about liquidity and valuation discrepancies that often plague closed-end structures. Any shares not tendered will leave Ives Ultra Capital Management with additional cash to deploy in new investments, creating flexibility for the fund to capitalize on emerging opportunities in the AI sector.

Growing Trend of Private Market Investing Through Public Vehicles

The launch of IVAI reflects a broader shift in how investors gain exposure to high-growth private companies. Private market investing has increasingly moved toward public markets this year, with several permanent capital vehicles launching to hold stakes in privately owned companies1

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. Robinhood Markets Inc. introduced two funds focused on private companies, while Powerlaw Corp. and the Fundrise Innovation Fund have also entered the market1

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. These vehicles offer investors another avenue to participate in the growth of private technology businesses without directly holding private company shares, democratizing access to investments previously reserved for institutional players and accredited investors.

Ives' Track Record and Strategic Positioning

Ives Ultra Capital Management is serving as the fund's investment manager, with Dan Ives on its board1

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. Ives previously led global technology research at Wedbush before departing the firm in July to launch his own investment bank, Yorkville Ives & Co.1

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. His reputation as a technology analyst and his connections within the AI ecosystem position him to identify promising late-stage opportunities. Cohen & Co. is working on the fund's IPO, which is expected to stop taking orders on Sept. 29 and price after the market closes that day2

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What This Means for AI Investment Landscape

The timing of this fund launch comes as AI startups continue to attract significant capital, yet many remain private longer than technology companies of previous eras. By creating a vehicle to invest in private AI companies through public markets, Ives is betting that demand for AI exposure will outweigh the traditional challenges of closed-end fund structures. The success of this IPO will serve as a test case for whether investors are willing to pay for curated access to late-stage AI startups, especially with the built-in tender option designed to protect against discount risks. Watch for how IVAI performs relative to its net asset value in its first year, as this will influence whether similar structures gain traction in the competitive landscape of private market investing.