Venture Goes Permanent Capital
Mat Sherman@mat
−8.6%
since Oct 1
The idea
I believe venture capital is quietly turning into private equity, with firms moving earlier, holding longer, and raising permanent capital, which means a new class of listed vehicles wrapping private startup stakes is arriving for everyday investors. This basket layers true listed venture holdcos at the core, surrounded by venture debt lenders, public companies whose balance sheets double as startup portfolios, and the first exchange-listed wrappers of this new asset class.
What it owns
- Exchange-listed funds now package private companies and private credit into accessible vehicles, making emerging asset classes available to public market investors in real time. · ERShares Private-Public Crossover ETFThis ETF holds private company stakes including SpaceX inside a listed fund, demonstrating how private venture value now reaches ordinary investors through public wrappers., KraneShares Artificial Intelligence & Technology ETFThe fund combines private AI company stakes into a listed ETF, capturing the venture cycle in artificial intelligence through a public wrapper., SPDR SSGA Apollo IG Public & Private Credit ETFIt wraps Apollo private credit in ETF form, extending the shift of private assets into public vehicles across the credit markets., BondBloxx Private Credit CLO ETFThis ETF wraps private credit CLOs in listed form, providing steady yield exposure to the growing private credit market., VCX FundThis fund holds stakes tied to SpaceX and Anthropic in a listed wrapper, proving that major private venture value can reach public investors.29%
- Lenders earn steady income from startups that remain private longer, creating predictable cash flows as the venture ecosystem shifts toward permanent capital structures. · Hercules CapitalThe largest venture debt lender benefits as startups stay private longer and rely on repeated borrowing instead of pursuing exits., Trinity CapitalThe lender focuses on growth-stage startups that delay going public, creating sustained demand for venture debt financing., Runway Growth FinanceIt provides late-stage venture debt, the lending layer that expands fastest when companies that would have gone public instead stay private and borrow., TriplePoint Venture GrowthIt lends to venture growth companies, earning more as startups remain private and extend their borrowing cycles., Horizon Technology FinanceThe lender provides venture debt across startup stages, benefiting as longer private lifespans increase demand for growth financing.28%
- Public companies carry meaningful portfolios of private stakes on their balance sheets, stakes that markets often underprice relative to their underlying value. · Nebius GroupThe company's balance sheet includes startup stakes that may be undervalued by the market relative to their intrinsic worth., AlphabetIts Other Bets division functions as an embedded venture portfolio within a public company, providing ballast while the venture-as-permanent-capital trend develops., Cannae HoldingsIt owns a portfolio of operating businesses whose combined value exceeds the holding company's market price, reflecting a persistent discount common to this type of structure., Galaxy DigitalIt carries a crypto venture portfolio on a public balance sheet, offering exposure to private venture value through a traditional listed company structure.26%
- Listed holding companies exist primarily to own stakes in private startups, offering pure exposure to the shift toward permanent venture capital structures. · Destiny Tech100This listed holding company owns top private stakes like SpaceX and Anthropic, representing the purest form of venture capital access for public market investors.7%
- Cash10%