Fidelity Investments closes its first private equity fund at $250 million

– Fidelity Investments raised $250 million for its first venture capital fund, Fidelity Venture Capital Fund I.

– The fund received backing from family offices, investment advisers, and high-net-worth individuals.

– The fund will focus on direct, minority investments in mid- to late-stage private companies, primarily in the US.

– Sectors include various industries, with investments in notable companies such as SpaceX, CoreWeave, and Anduril Industries.

– Approximately $31 million has already been invested in 10 companies.

– Karin Fronczke, portfolio manager and global head of private equity, highlighted attractive valuations in the current market cycle.

– Asset managers, including Fidelity, have been increasingly moving into private markets, driven by client demand and higher margins.

– Fidelity manages $5.5 trillion in assets (as of June) and has invested in private companies for over 15 years, mainly through mutual funds.

– Through these funds, Fidelity has invested over $28 billion in around 350 private companies.

– Fidelity also manages $27.8 billion in various alternative investments, including private equity, private credit, real assets, liquid alternatives, and digital assets.

– Last year, Fidelity launched the Fidelity Multi-Strategy Credit Fund and its first business development company.

– Fidelity completed fundraising for its Venture Capital Fund I in about four months.

– The firm filed a Form D for the fund in March.

– Fidelity Venture Capital Fund I GP LLC serves as the general partner of the issuer.

– Seven individuals are listed as “executive officers” of the fund: Heather Bonner, Tim Cohen, Casey Condron, Jonathan Davis, Christina E., Lisa Di Iorio Krieser and Tom Vercillo.