SpaceX and OpenAI Backed Powerlaw Fund to Directly List on Nasdaq Tonight

According to Sentinel Beating monitoring, the closed-end fund Powerlaw Corp. (stock symbol: PWRL) will be listed on the Nasdaq via a Direct Listing on May 27. As a closed-end fund with existing assets, this listing will not involve issuing new shares or raising any new funds; instead, existing shares will directly trade on the public market. The fund's core holdings include Elon Musk's space exploration technology company SpaceX and the artificial intelligence company OpenAI, providing retail investors with a direct opportunity to invest in leading tech unicorns that are not yet publicly traded.

Driven by expectations of SpaceX's valuation reaching $2 trillion and OpenAI approaching $1 trillion, retail investor demand for Pre-IPO equity has surged recently. Unlike high-net-worth accredited investors, the avenues for the general public to invest directly in the private market are limited, leading to significant premiums in the trading prices of publicly listed funds like Destiny Tech100, Robinhood Ventures Fund I, and Fundrise Innovation Fund LLC compared to their net asset values. Powerlaw, operated by an affiliate of San Francisco-based venture capital firm Akkadian Ventures, holds positions in 18 private companies. As of May 13, the fund's net asset value totaled $604.1 million, equivalent to $13.97 per share. The fund's two largest holdings are SpaceX (valued at approximately $117 million, more than doubling from the initial cost) and OpenAI (valued at around $46.9 million).

According to the listing prospectus, Powerlaw has a total issued share capital of 43.24 million shares. Since this is a direct listing of existing shares, only approximately 20% of free-floating shares held by current shareholders will be available for trading on the first day, with the remaining shares gradually unlocking over the next 6 months. The fund follows an active management strategy, intending to realize mature projects at the right time and reinvest in high-growth positions, aiming to achieve over 10x returns for its existing 600+ shareholders. The fund charges a 2.5% annual management fee and does not levy any performance-based fees. As nearly 80% of the fund's investments are held through Special Purpose Vehicles (SPVs), multiple layers of nesting may introduce additional fees. With the recent warning from AI company Anthropic regarding the invalidation of unauthorized SPV holdings, nominee holding channels face compliance cleanup risks. CEO Mike Dinsdale openly acknowledged that while SPVs are excellent tools in the right hands, they can be dangerous tools in the wrong hands.