We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is HOOD's Private Markets Access to Retail Investors a Growth Driver?
Read MoreHide Full Article
Key Takeaways
HOOD filed to launch Robinhood Ventures Fund I, trading on NYSE under ticker RVI.
The fund will invest in private firms in aerospace, AI, fintech and robotics sectors.
HOOD aims to expand AUM, boost ARPU and deepen engagement with high-value users.
Robinhood Markets (HOOD - Free Report) , founded on the mission of democratizing finance, is extending its reach into private markets. It has filed with the Securities and Exchange Commission to launch a publicly traded closed-end fund, Robinhood Ventures Fund I, which will invest in private companies across aerospace, AI, fintech and robotics. Managed by Robinhood Ventures DE, LLC, the fund is set to trade on the NYSE under the ticker RVI, pending approval.
For retail investors, this represents a breakthrough: direct access to startup investing, long reserved for accredited investors. The move comes amid a sharp decline in the number of public companies and the surge in private valuations, which now exceed $10 trillion in the United States.
This initiative follows Robinhood’s June launch of private tokenized stocks in the European Union (EU), extending its vision of making alternative assets accessible. Like its EU offering, RVI aims to give U.S. investors a way to participate in high-growth companies before they go public.
By launching RVI, Robinhood is positioning itself at the crossroads of venture capital and public markets, offering retail investors exposure to cutting-edge sectors while strengthening its moat in alternative investing.
Robinhood’s private-markets push will likely unlock new fee revenue streams, deepen engagement with high-value users and expand its addressable market. Also, the fund will result in recurring assets under management (AUM), boost Average Revenue Per Unit and strengthen its moat alongside launches in social, AI and trading tools, thus compounding growth and monetization.
Steps By Other Firms to Make Private Markets More Accessible
Of late, private markets are turning out to be a lucrative business option for many financial firms. BlackRock (BLK - Free Report) is enhancing its private markets capabilities to capitalize on rising demand and attract new clients. Over the past year, BlackRock has invested more than $28 billion to strengthen its position in the high-growth private markets space. Further, BlackRock is targeting $400 billion in private markets fundraising by 2030, with an aim to double its operating income and market capitalization.
Further, Goldman Sachs (GS - Free Report) and T. Rowe Price (TROW - Free Report) have formed a partnership to expand retirement and wealth solutions across public and private markets. Goldman will invest $1 billion for a 3.5% stake in TROW, gaining access to its retirement-focused clients. The collaboration will roll out private market access, Target-Date Strategies (mid-2026), model portfolios, multi-asset offerings and advisor-managed accounts. Goldman and T. Rowe Price aim to boost AUM, broaden client reach and capture higher fee income in the growing retirement solutions market.
This year, shares of HOOD have skyrocketed 208.2%. In the same time frame, the industry has jumped 26.9%.
Image Source: Zacks Investment Research
Given the impressive price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 13.92X compared with the industry average of 2.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2025 and 2026 earnings implies year-over-year growth of 45.9% and 18.3%, respectively. In the past week, earnings estimates for 2025 and 2026 have been revised upward to $1.59 and $1.88, respectively.
Image: Shutterstock
Is HOOD's Private Markets Access to Retail Investors a Growth Driver?
Key Takeaways
Robinhood Markets (HOOD - Free Report) , founded on the mission of democratizing finance, is extending its reach into private markets. It has filed with the Securities and Exchange Commission to launch a publicly traded closed-end fund, Robinhood Ventures Fund I, which will invest in private companies across aerospace, AI, fintech and robotics. Managed by Robinhood Ventures DE, LLC, the fund is set to trade on the NYSE under the ticker RVI, pending approval.
For retail investors, this represents a breakthrough: direct access to startup investing, long reserved for accredited investors. The move comes amid a sharp decline in the number of public companies and the surge in private valuations, which now exceed $10 trillion in the United States.
This initiative follows Robinhood’s June launch of private tokenized stocks in the European Union (EU), extending its vision of making alternative assets accessible. Like its EU offering, RVI aims to give U.S. investors a way to participate in high-growth companies before they go public.
By launching RVI, Robinhood is positioning itself at the crossroads of venture capital and public markets, offering retail investors exposure to cutting-edge sectors while strengthening its moat in alternative investing.
Robinhood’s private-markets push will likely unlock new fee revenue streams, deepen engagement with high-value users and expand its addressable market. Also, the fund will result in recurring assets under management (AUM), boost Average Revenue Per Unit and strengthen its moat alongside launches in social, AI and trading tools, thus compounding growth and monetization.
Steps By Other Firms to Make Private Markets More Accessible
Of late, private markets are turning out to be a lucrative business option for many financial firms. BlackRock (BLK - Free Report) is enhancing its private markets capabilities to capitalize on rising demand and attract new clients. Over the past year, BlackRock has invested more than $28 billion to strengthen its position in the high-growth private markets space. Further, BlackRock is targeting $400 billion in private markets fundraising by 2030, with an aim to double its operating income and market capitalization.
Further, Goldman Sachs (GS - Free Report) and T. Rowe Price (TROW - Free Report) have formed a partnership to expand retirement and wealth solutions across public and private markets. Goldman will invest $1 billion for a 3.5% stake in TROW, gaining access to its retirement-focused clients. The collaboration will roll out private market access, Target-Date Strategies (mid-2026), model portfolios, multi-asset offerings and advisor-managed accounts. Goldman and T. Rowe Price aim to boost AUM, broaden client reach and capture higher fee income in the growing retirement solutions market.
Robinhood’s Price Performance, Valuation & Estimate Analysis
This year, shares of HOOD have skyrocketed 208.2%. In the same time frame, the industry has jumped 26.9%.
Image Source: Zacks Investment Research
Given the impressive price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 13.92X compared with the industry average of 2.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2025 and 2026 earnings implies year-over-year growth of 45.9% and 18.3%, respectively. In the past week, earnings estimates for 2025 and 2026 have been revised upward to $1.59 and $1.88, respectively.
Image Source: Zacks Investment Research
HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.