TLDR:
- Magnetar has closed a $235 million venture fund for generative AI startups.
- The fund aims to back early-to-growth-stage companies advancing the generative AI revolution.
Magnetar, an alternative asset manager, has recently closed the Magnetar AI Ventures Fund, a $235 million venture fund. The Fund’s investor base comprises leading global institutions and strategic partners, including PEAK6 Strategic Capital and Apex Fintech Solutions, the anchor investors in this initiative. The investment strategy aims to back early-to-growth-stage companies advancing the generative AI revolution. The fund will target companies operating across the AI stack, including models, infrastructure, and applications, as well as across modalities, focusing on companies with differentiated technology, execution-oriented management teams, and demonstrable business traction.
Portfolio companies will benefit from Magnetar’s institutional platform’s comprehensive resources, the firm’s financial and operational expertise, and its extensive network of relationships across AI/ML and the broader finance sector. The Fund has contracted with CoreWeave, the AI Hyperscaler, to provide portfolio companies with exclusive access to a dedicated cluster of GPUs and fully reserved high-performance computers. Portfolio companies will also have access to technical expertise and premium support.
Founded in 2005, Magnetar is an alternative investment manager with nearly $17.5 billion of assets under management as of June this year. The firm seeks to achieve stable risk-adjusted returns by employing a wide range of alternative credit and fixed income, systematic investing, healthcare, venture, and fundamental and event-driven investing strategies. Magnetar invests across the capital structure in both public and private transactions, utilising fundamental and quantitative analysis. Based in Evanston, Illinois, the firm has offices in New York and London.
Magnetar’s Managing Partner, David Snyderman, stated, “We believe generative AI will reshape the future. The creation of this fund solidifies our commitment to advancing innovative AI solutions and supporting the bold entrepreneurs catalysing this technological revolution. As we continue to identify compelling investment opportunities and deploy capital, we are confident in our ability to help drive growth for our portfolio companies while generating long-term value for our investors.”
