Bracket Capital Closes $450M Fund to Buy Up Employee Shares at SpaceX and Other Pre-IPO Companies

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

Bracket Capital Closes $450M Fund to Buy Up Employee Shares at SpaceX and Other Pre-IPO Companies

Bracket Capital, a Beverly Hills-based investment management firm focused on acquiring secondary shares in later-stage tech companies like SpaceX and Bird, announced Wednesday it has raised nearly half a billion dollars in equity.

The firm will split the cash between two funds, a traditional $150 million fund and another $350 million one that will co-invest alongside other firms.

Rather than buying stakes directly in startups, the firm said 80% of its shares come from snapping up existing shares. Those often come from early employees – tired of waiting for their company to go public – who are looking to cash out some of their equity so they can buy a house or pay for tuition.


The goal is to capitalize on the trend of startups taking increasingly longer lengths of time to IPO while avoiding the risk of early-stage startups.

Yalda Aoukar (right) and Jihan Bowes-Little are the co-founders of Bracket Capital.

For instance, the firm invested in Airbnb's 2017 Series F at a $30 billion valuation. Late last year, the vacation rental service went public at a $47 billion valuation and now it has a market capitalization of $122 billion.

Other Bracket investments include SpaceX, Clover Health, Palantir, Coinbase, SoFi, eToro, Reddit, Impossible Foods, Bird, Clutter and Hive.AI.

Bracket was founded in 2017 by two ex-London bankers, Jihan Bowes-Little, formerly of Goldman Sachs, and Yalda Aoukar, who worked at Lehman Brothers, Barclay's and Morgan Stanley. The firm will now be managing a total of $650 million.

"We have developed a unique reputation in the market given our track record, discerning approach to investing, and deep industry relationships," Aoukar said in a statement. "We thank our new and returning limited partners for their confidence and trust as we act as stewards of their capital."

https://twitter.com/thebenbergman
ben@dot.la

Subscribe to our newsletter to catch every headline.

How Women’s Purchasing Power Is Creating a New Wave of Economic Opportunities In Sports

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

How Women’s Purchasing Power Is Creating a New Wave of Economic Opportunities In Sports
Samson Amore

According to a Forbes report last April, both the viewership and dollars behind women’s sports at a collegiate and professional level are growing.

Read moreShow less
https://twitter.com/samsonamore
samsonamore@dot.la
LA Tech Week Day 5: Social Highlights
Evan Xie

L.A. Tech Week has brought venture capitalists, founders and entrepreneurs from around the world to the California coast. With so many tech nerds in one place, it's easy to laugh, joke and reminisce about the future of tech in SoCal.

Here's what people are saying about the fifth day of L.A. Tech Week on social:

Read moreShow less

LA Tech Week: Six LA-Based Greentech Startups to Know

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

LA Tech Week: Six LA-Based Greentech Startups to Know
Samson Amore

At Lowercarbon Capital’s LA Tech Week event Thursday, the synergy between the region’s aerospace industry and greentech startups was clear.

The event sponsored by Lowercarbon, Climate Draft (and the defunct Silicon Valley Bank’s Climate Technology & Sustainability team) brought together a handful of local startups in Hawthorne not far from LAX, and many of the companies shared DNA with arguably the region’s most famous tech resident: SpaceX.

Read moreShow less
https://twitter.com/samsonamore
samsonamore@dot.la
RELATEDEDITOR'S PICKS
Trending