Democratizing access to private tech via closed-end funds (with Carol Massar, Tim Stenovec, Anthony Hughes)

Mike Dinsdale explains Power Law's closed-end fund that gives retail investors access to private tech giants (SpaceX, OpenAI, Databricks, etc.). The fund trades at a premium due to supply-demand imbalance. He plans to sell SpaceX holdings post-lockup to reinvest in private companies, and sees a structural shift toward embedding such funds in retirement accounts.

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Power Law Capital Group 2.5
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Mike Dinsdale 6.5

Democratizing access to private tech via closed-end funds (with Carol Massar, Tim Stenovec, Anthony Hughes)

ndx

The strong demand for private tech exposure and the structural shift toward democratizing access suggests continued investor enthusiasm for tech, supporting valuations. However, the premium to NAV indicates frothy sentiment.

Carol Massar

Introduces Power Law's closed-end fund that owns stakes in SpaceX and OpenAI, recently began publicly trading.
Mike Dinsdale

Power Law is the first venture-backed firm to list a closed-end fund. Their thesis is to unlock access to private companies for the 90% of US households that are non-accredited and locked out of this wealth creation.
Anthony Hughes

Notes that closed-end funds including Power Law trade at significant premiums to NAV, with high volatility around the SpaceX IPO.
Mike Dinsdale

The premium is pure supply-demand: massive demand for private tech names with very limited supply. Their differentiation is being venture capitalists who can identify 'what's next' beyond the obvious mega-caps.
Anthony Hughes

Asks about intentions for the SpaceX holding now that it's public, and about SPV transparency concerns.
Mike Dinsdale

They will sell SpaceX post-lockup to reinvest in private companies, as that's their value proposition. On SPVs, they've done ~900 secondary transactions and only use audited SPVs with full cap table traceability, protecting investors.

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