A closed-end fund called Powerlaw Corp. (ticker: PWRL) is set to list on Nasdaq on May 27 via a direct listing, bypassing the traditional IPO process. Since it’s already holding assets, the fund won’t issue new shares or raise fresh cash—it’s just putting existing shares on the public market. The big draw: Powerlaw’s core holdings include Elon Musk’s SpaceX and OpenAI, offering retail investors a rare backdoor into two of the most valuable private companies in the world.
Demand for pre-IPO exposure has been heating up, fueled by SpaceX’s potential $2 trillion valuation and OpenAI’s push toward $1 trillion. But for everyday investors, options are slim compared to accredited high-net-worth types. That’s why existing publicly traded funds like Destiny Tech100, Robinhood Ventures Fund I, and Fundrise Innovation Fund LLC have traded at massive premiums to their net asset values. Powerlaw, run by an affiliate of San Francisco venture firm Akkadian Ventures, holds 18 private companies. As of May 13, the fund’s total net asset value stood at $604.1 million, or $13.97 per share. Its two biggest bets: SpaceX (valued at roughly $117 million, more than double its cost) and OpenAI (about $46.9 million).
According to the listing documents, Powerlaw has 43.24 million shares outstanding. Since this is a direct listing of existing shares, only about 20% of the float will trade on day one; the rest will unlock over the next six months. The fund employs an active management strategy, planning to cash out mature investments and recycle into high-growth positions, aiming for a 10x return for its current 600-plus shareholders. It charges a 2.5% annual management fee with no performance fee. But nearly 80% of the fund’s investments are held through special purpose vehicles (SPVs), which can layer on additional costs. And there’s a looming compliance risk: AI company Anthropic recently warned it will void unauthorized SPV holdings. CEO Mike Dinsdale acknowledged the tension, calling SPVs “a great tool in the right hands, but a dangerous tool in the wrong hands.”