Evanston, Ill.-based Magnetar held its final close of its initial venture fund, building on the $17.5 billion firm’s multi-strategy hedge fund prowess that has historically spanned the private-public arena.
Magnetar AI Ventures Fund attracted $235 million, which included capital from anchor investors PEAK6 Strategic Capital and Apex Fintech Solutions. The strategy is focused on investing in early-to-growth stage companies involved in the generative AI space. According to Co-Founder and Managing Partner of PEAK6 and Chairman of Apex Fintech Solutions Jenny Just, portfolio companies will be able to solve financial and technical needs in one stop in partnering with Magnetar. She described the investment as supporting the next wave of AI advancements.
Magnetar is no stranger to cutting edge tech investment, having participated in the $7.5 billion debt financing for CoreWeave earlier this year alongside Blackstone. Tiger cub Coatue was the lead investor in a $1.1 billion Series C round announced by CoreWeave on May 1.
Additionally, Magnetar’s venture fund has contracted with CoreWeave, an AI Hyperscaler, to provide portfolio companies with exclusive access to a dedicated cluster of GPUs and fully reserved high-performance compute (HPC).
“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 catalyzing this technological revolution,” said David Snyderman, managing partner of Magnetar. “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.”
Specifically, the venture fund will target companies operating across the AI stack — including models, infrastructure, and applications — as well as across modalities including text, audio and visual, focusing on companies with differentiated technology, execution-oriented management teams and demonstrable business traction.
Portfolio companies stand to benefit from the comprehensive resources of Magnetar’s institutional platform, the firm’s financial and operational expertise, and its extensive network of relationships across AI/ML and the broader finance sector, officials added.
“As AI rapidly advances toward widespread adoption, and demands on infrastructure intensify, it has become clear that HPC is the backbone of the AI economy,” said Jim Prusko, senior portfolio manager and partner at Magnetar. “We’re excited to deepen our partnership with CoreWeave to provide our portfolio companies with the HPC and resources necessary to build the businesses of the future.”
