Investors including hgih-net-worth individuals, family offices, and registered investment advisors have backed a venture capital fund from Fidelity Investments.
The firm has today (Oct. 2) announced the final close of its Fidelity Venture Capital Fund I LP which has raised $250 million of committed capital to meet its target four months after it opened to investors.
The fund will mostly make minority investments in mid-to-late-stage private companies, globally and across sectors, although there will be a strong focus on US firms and those in the technology, media, and telecommunications sectors.
So far, the fund has invested around $31 million in ten companies in industries including aerospace, defense, artificial intelligence, data and e-commerce.
Despite some challenging times for the venture capital market globally, artificial intelligence has been one of the drivers of a resurgence for the domestic market with US venture capitalists spending $55.6 billion backing startups in the second quarter of 2024, up by about half from a year earlier quarter and the spendiest quarter in two years, according to PitchBook data.
Fidelity Investments has been investing in private companies for 15 years with a total of more than $28 billion in capital deployed on behalf of its suite of mutual funds. The firm has made more than 600 investments in over 350 firms.
Karin Fronczke, portfolio manager & global head of Private Equity at Fidelity Investments, says that the latest successful fundraise is testament to the firm’s reputation in private company investments.
“What sets Fidelity apart is our experienced investment team, our access to private companies, our deep global research capabilities, and our ability to help support companies through their lifecycle,” said Fronczke.
Fidelity’s range of alternative investments includes 50 funds including three actively managed liquid alts ETFs that were launched this year, building on its 2022 launch of three liquid alts mutual funds.
The quality of AI ROI measurement depends on pre-deployment decisions around business outcomes, leadership alignment, and establishing trusted information, among other factors.
A state-by-state analysis of retail investor behavior reveals AI-powered research tools are reshaping how clients approach investment decisions.
LPL picks up $1.1B from Wells Fargo's independent channel as the wirehouse gains a $410M family team from UBS.
Most Americans want to age at home but few have a financial plan to pay for it, according to new research.
Halbert Hargrove senior wealth advisor weighs in on the products' guaranteed income upside, the operational drag and his wish list for carriers.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
