HOOD Brings Private Equity Closer to Retail Investors With RVI Launch

In order to make private markets accessible to everyday investors, Robinhood Markets, Inc. HOOD is set to launch Robinhood Ventures Fund I, which will trade on the NYSE under the ticker RVI. RVI, structured as a publicly traded closed-end fund, will invest in a curated basket of late-stage private companies across aerospace, AI, fintech and robotics. HOOD had filed with the Securities and Exchange Commission to launch the fund in September 2025.

Shares will be offered through an IPO process on Robinhood’s platform, allowing retail investors to request allocations directly. The anticipated offering price is $25 per share. Unlike traditional private equity funds, participation does not require accredited investor status or high minimum commitments, making the structure accessible to a broad investor base.

Details of HOOD’s Private Markets Fund

The fund intends to hold a concentrated portfolio of prominent private companies across sectors. Reported holdings include firms such as Databricks, Revolut, Mercor, Airwallex, Boom Supersonic, Oura and Ramp, alongside cash and equivalents. In addition, HOOD has reached an agreement to acquire shares of Stripe following the fund’s IPO, although this position will not be reflected in the initial portfolio at launch.

One distinguishing feature of the fund is its daily liquidity once listed. Although it invests in private companies, RVI shares themselves can be traded on the open market like other publicly listed securities. This setup provides flexibility for investors who want exposure to pre-IPO businesses without locking up capital for extended periods, a common requirement in traditional venture capital structures.

In terms of fees, the fund will charge an annual management fee of approximately 2%, with a reduced rate of 1% in the first six months after launch. Notably, there is no performance-based fee. The portfolio will also adhere to diversification guidelines, with individual holdings capped at 20% of total assets to limit concentration risk.

Robinhood’s Rationale Behind the Launch

HOOD’s initiative reflects a broader effort to democratize investing by opening access to private-market opportunities that have typically been dominated by venture capital firms and institutional players.

Moreover, the expansion into private markets is a way to diversify revenues and growth following slower stock and crypto trading in the fourth quarter of 2025.

Notably, the private-markets push is expected to unlock new fee revenue streams for Robinhood and deepen engagement with high-value users. Also, the fund will likely result in recurring assets under management (AUM), boost Average Revenue Per Unit and strengthen HOOD’s moat, alongside launches in social, AI and trading tools, thus compounding growth and monetization.

By packaging private-company exposure into a tradable fund format, Robinhood is attempting to blend venture-style access with public-market convenience. Whether the model gains sustained traction will likely depend on investor appetite for private assets and the performance of the underlying portfolio in the years ahead.

Robinhood’s Price Performance & Zacks Rank

In the past year, HOOD shares have gained 34.2%, outperforming the industry’s 20.1% growth.

Image Source: Zacks Investment Research

Robinhood currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Private markets have become a lucrative business option for many financial firms.

BlackRock BLK, long known for its leadership in public markets and low-cost ETFs, has made a strategic push into private markets, transforming itself into a more diversified asset manager and competitor to traditional private equity firms. BLK’s expansion has been driven by a series of high-profile acquisitions, including Global Infrastructure Partners, HPS Investment Partners and private markets data provider Preqin.

BlackRock is also integrating proprietary data and technology, such as via its Aladdin platform, to provide greater transparency and unified investment solutions across public and private assets.

Goldman Sachs GS has also been actively growing its footprint in private markets across multiple fronts, aiming to build out its private credit, private equity and alternative investment capabilities. The firm created a Capital Solutions Group to unify and expand financing, origination and private credit and equity services.

Goldman has also broadened its private markets product lineup with evergreen and open-ended funds that give qualified investors access to diversified private equity, infrastructure, real estate and credit strategies. GS continues to strengthen its private equity platform via acquisitions like Industry Ventures, adding deeper venture and secondary investment capabilities, and has closed large co-investment funds, highlighting strong fundraising momentum.

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This article originally published on Zacks Investment Research (zacks.com).

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