SoFi Technologies (SOFI) is expanding access to private markets, an asset class once reserved for institutional investors and high-net-worth individuals. Following this news, SOFI stock surged about 5% shortly after the market opened on Tuesday and hit a new 52-week high of $20.89.
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Through new partnerships with asset management firms such as Cashmere, Fundrise, and Liberty Street Advisors, SoFi is allowing its members to invest in high-growth private companies like OpenAI, SpaceX, and Epic Games with a minimum of $10.
SOFI is Breaking Down Barriers
Private markets have often delivered strong returns but were inaccessible to retail investors. By lowering the entry point and simplifying the process, SoFi is making it easier and more affordable for retail investors to enter this market.
This move is part of SoFi’s efforts to expand its alternative investment offerings. It recently added new funds from big names such as ARK, KKR (KKR), Carlyle (CG), and Franklin Templeton (BEN), giving users access to private credit, real estate, and pre-IPO companies.
Further, SoFi’s relaunched its robo-advisor, in collaboration with BlackRock (BLK), offering members ready-made portfolios that include alternative investments too.
It must be noted that SoFi is not alone in this trend to offer exposure to private companies. Recently, Robinhood Markets (HOOD) began offering tokenized shares of companies like OpenAI and SpaceX in Europe. This growing trend signals a shift in making the private market more accessible.
Is SOFI Stock a Good Buy?
Turning to Wall Street, SOFI stock has a Moderate Buy consensus rating based on seven Buys, five Holds, and two Sells assigned in the last three months. At $14.85, the average SOFI stock price target implies a 25.58% downside potential.
