Keep pulling the thread on Dave Nadig.
Dave Nadig believes the current push to 'democratize' private investing is primarily driven by institutional investors seeking to exit their positions by selling to retail investors at the end of a market cycle.
Major private equity firms including Blackstone, Apollo, KKR, Ares, and Blue Owl are actively building retail distribution channels for their products.
There is widespread speculation that private market asset managers are planning to target the 401(k) market for their next phase of retail expansion.
The Pershing Square US (PSUS) closed-end fund, managed by Bill Ackman, is trading at a 20% discount to its net asset value.
Boaz Weinstein's ETF, CEFS, employs an activist strategy of buying closed-end funds at a discount to NAV and then pressuring management to close the gap through buybacks or liquidation.
The USVC fund, launched by AngelList and Naval Ravikant, invests in illiquid private companies such as SpaceX.
The management fee for the Pershing Square US (PSUS) fund is approximately 2%.
The USPE fund from TAP charges a 2% management fee, but its total expenses can reach 3% to 4% due to acquired fund fees from investing in other funds.
The USVC fund is structured as an interval fund that offers to redeem up to 5% of its assets quarterly, though this liquidity is not guaranteed.
The XOVR ETF holds a 15% allocation to the private company SpaceX, utilizing the maximum allowed illiquid investment bucket.
To attract investors to the PSUS fund, Pershing Square offered a structure where investors received one share of the management company for every four or five shares of the fund they purchased.
The investment thesis for the USVC fund is based on the belief that AngelList provides early and preferential access to high-quality deal flow from Silicon Valley.