ERShares Expands Access to High-Growth Private Companies and Sets a New Standard for Private Equity Valuation in ETFs

NEW YORK, Feb. 26, 2025 /PRNewswire/ -- ERShares, the issuer of the XOVR ETF, the first exchange-traded fund to integrate private equity into its portfolio, continues to lead the financial industry with an innovative investment strategy. With a diversified portfolio that includes SpaceX (currently 10% of total holdings) and exposure to Klarna, a leading fintech company preparing for its IPO, ERShares is setting a new standard for investor access to high-growth private companies.

Bridging the Gap Between Private and Public Markets

In a recent interview on Fox Business, Eva Ados, Chief Investment Strategist at ERShares, discussed the growing issue of private companies remaining private longer and limiting access for retail investors.

"As the IPO landscape evolves, many high-profile companies, including SpaceX, are delaying their public offerings. This limits access to only accredited and institutional investors, leaving retail investors out of some of the most significant wealth-creation events," said Ados. "Some industry players prefer to keep private equity out of reach for retail investors, reinforcing a system where only institutional and accredited investors can benefit. At ERShares, we believe in democratizing access to these opportunities, ensuring that everyday investors can participate in the growth of tomorrow's industry leaders before they go public."

A New Era of Private-Public Investing

Opportunities for investors to access high-potential ventures at IPO valuations of around $560 million—similar to Amazon in 1997 or Nvidia in 1999—have become increasingly rare or even nonexistent in today's markets.

"With private companies delaying IPOs, retail investors face increasing barriers to these high-growth opportunities. Our fund is designed to bridge this gap, providing investors access to promising companies like SpaceX, along with exposure to companies such as Klarna, before they reach public markets," said Dr. Joel Shulman, Founder and CIO of ERShares.

Enhancing Private Equity Valuation Standards in ETFs

ERShares remains committed to adhering to industry best practices in valuation methodologies for private equity investments held within ETFs. XOVR's pricing framework follows structured, research-backed principles to ensure consistency and transparency in valuation practices.

"Valuing private equity within an ETF requires a rigorous, multi-factor approach that accounts for market-driven price discovery mechanisms," Dr. Shulman explained. "We adjust valuations based on tender offers, IPOs, ERShares' private transactions at new price levels, and significant market movements with volume and activity. Our team continuously monitors these holdings using diverse, verified data sources to ensure our net asset value (NAV) accurately reflects real market dynamics while maintaining compliance with industry valuation standards."

ERShares continues to lead in private market investing and ETF management, providing investors with access to high-growth companies before they go public. Acknowledging the evolving landscape of private market data, the firm remains open to refining its valuation methodologies as more reliable real-time pricing emerges.

The Future of Investing: Expanding Access to Private and Public Markets

As ERShares continues to expand access to pre-IPO investments, it remains committed to providing investors with exposure to high-growth companies through a disciplined and research-driven investment approach.

"We continue to provide evidence of how this private-public model works," added Dr. Shulman. "Our approach will soon become clear as upcoming IPOs unfold, reinforcing the value of integrating high-growth private firms into a diversified portfolio. The future of investing is no longer just public or private—it is both."

Past performance is no guarantee of future results, please refer to the disclosures below: https://entrepreneurshares.com/disclosures/

SOURCE ERShares