How are energy investors positioned?
Investing.com -- SoFi Technologies Inc. (NASDAQ:SOFI) climbed 7.4% Tuesday after unveiling new private market fund offerings through partnerships with Cashmere, Fundrise, and Liberty Street Advisors. The move significantly broadens access to high-growth private companies, such as OpenAI, SpaceX, and Epic Games, for SoFi’s 10.9 million members, with minimum investments starting at just $10.
The participating asset managers bring varied strengths to the platform. Fundrise, the largest direct-to-consumer alternative asset manager in the U.S., has over 2 million users and a strong track record in real estate and venture capital, while Cashmere is focused on early-stage companies backed by cultural influencers such as Josh Allen and Jayson Tatum.
Liberty Street Advisors contributes differentiated access to private market and alternative asset strategies designed to diversify beyond traditional equities and bonds. “SoFi is expanding alternative investment opportunities for a new generation of investors,” said Anthony Noto, CEO of SoFi.
Alternative assets have become a focus point for financial firms looking to cater to younger retail investors hungry for access to fast-growing companies traditionally limited to institutions. Over the last year, SoFi has added funds from ARK, KKR, Carlyle, and Franklin Templeton, complementing its offerings across private equity, real estate, and credit markets.
SoFi’s expansion comes amid broader fintech competition to democratize alternative investing. Rival Robinhood Markets Inc (NASDAQ:HOOD) recently launched a private investing tool using equity tokenization, a move now under scrutiny from European regulators after OpenAI cautioned investors about unauthorized offerings.
The new products are integrated directly into the SoFi app and website, positioning the digital platform as a central hub for retail alternative investing. “Our unmatched selection across investment opportunities like private equity, venture, private credit and real estate, give our members the ability to build truly diversified portfolios to reach financial independence and realize their ambitions,” Noto added.
By reducing the barriers to entry in private asset classes, SoFi aims to position itself at the forefront of a financial services shift emphasizing accessibility. With the addition of these funds, its members now have streamlined, low-cost exposure to previously exclusive investment opportunities through a single mobile interface.