What’s Next is
the Whole Point

The Great Graduation

The most famous private market companies in history may be on to the next chapter.

For more than a decade, some of the most well-known companies reshaping the world were unavailable to most of the people living in it. SpaceX, OpenAI and Anthropic grew into three of the largest private companies ever created. Their scale made private-market access feel like the opportunity itself.

Now the map appears to be changing. SpaceX is public. OpenAI and Anthropic may follow. The three companies that came to define the private-market access trade are moving toward universal availability in ordinary brokerage accounts. These three companies also took the lion’s share of private market capital along the way

That is about to change.

We are happy that the entire world of investors may soon have access to the three “icons.” The purpose of private-market investing was never to create scarcity against global demand. It was to identify consequential companies before they became obvious, gain access before they became broadly available, and manage those investments with discipline as they matured.

We are still in the early stages of what we see as an emerging new economy reordered by artificial intelligence. Right now, new category leaders are already being built beneath and above the companies now graduating into the public markets. Most of the world doesn’t know these companies.

We believe our job is to find them.

Moving beyond three logos

Famous names attract attention. We do not believe that they are, by themselves, a strategy.

A portfolio should not become a museum of yesterday's access. When a portfolio company goes public, the company does not suddenly become less important. But the investment rationale does change. Liquidity changes. Price discovery changes. And the reason for owning a company through a public venture capital fund changes.

We realize that a newly public company may have decades of growth ahead of it. When a company goes public inside a public venture capital fund, it does not create an automatic sell signal. It creates a number of choices.

So, what do we do when a company in the PWRL portfolio goes public?

We may retain exposure when prospective returns justify it. We may reduce a position when its size, valuation or liquidity changes the balance of risk and reward. We may sell when the capital can work harder somewhere else. The decision should be driven by underwriting logic in the context of a fund designed for private market exposure that holds a large portion of the fund in a company that investors can now buy directly.

That is why Powerlaw has begun realizing a portion of the gains created by the portfolio's first generation of winners. On September 23, 2026, the Fund announced it sold its first tranche of SpaceX shares and netted ~$19.0M ($140/share). This partial disposition of the Fund’s largest position is evidence of its realize-and-reinvest model in action.

From Access to Outcomes

Powerlaw was created to bring venture-capital expertise into a publicly-traded fund. Access has never been the whole product. Our ambition is to build a repeatable capital cycle:

Source. Realize. Share. Reinvest. Repeat.

That cycle rests on sixteen years of experience across more than 800 private-market transactions through our affiliated investment platform, Akkadian Ventures. It also rests on a simple belief: a mark-up is not a return until it is realized.

Year to date, the Fund converted $63.2 million of private positions into cash, generating approximately $31.5 million of realized gains at an aggregate realized multiple of approximately 2.0x.

A New Pact With Stockholders

Realization creates a choice. A fund can retain every available dollar, return every available dollar, or establish a discipline for doing both.

We have chosen the third path.

Powerlaw has initiated a monthly dividend for the fiscal year ending September 30, 2027, declared quarterly, that provides stockholders a way to participate in the Fund's distributable value in a consistent, visible and understandable manner.

This does not turn Powerlaw into a fixed income fund. It is, instead, a capital-allocation commitment. When the Fund has value available to distribute, stockholders should be able to participate in that value. At the same time, when compelling private investments are available, the Fund should retain meaningful capacity to pursue them. Our aim is to strike a balance between sharing value and compounding value. Distributions reduce the Fund's NAV by the amount paid and may be sourced from net investment income, realized gains and/or return of capital.

Building a Portfolio of What We Believe Comes Next

The largest private companies of the last cycle were dominated by a handful of recognizable names. We believe the next private market will be broader and more complex. Now is the time to redeploy capital to what we believe are the next generation of high-growth companies before the next wave of liquidity comes back to the private markets.

Powerlaw constructs its portfolio broadly across all the areas of the venture ecosystem, not by which technology is being used or by chasing logos. To this end, we have identified the five frontiers of the new economy to understand our holdings, with each frontier defining our POV on company selection. The five frontiers of the future are:

• Machine Intelligence: the companies whose product is part of the intelligence value chain
• Space & Defense: the companies building machines that operate autonomously in physical, contested and extreme environments.
• Financial Infrastructure: the companies rebuilding how value is priced, moved and settled.
• Future of Work: the companies changing how organizations are staffed, run and created.
• Synthetic Biology: the companies re-engineering living systems.

The frontier tells you where a company is building. It does not tell you what kind of business it is. Two companies can be building the same frontier and share almost nothing operationally. One pours concrete and launches hardware. One runs a platform that thousands of developers build on. One ships a product that a person opens on a phone. Same frontier, different businesses — different capital requirements, different competitive dynamics.

To ensure that we are building a thoughtful portfolio, we then ask what layer does the company operate in. The question the layer asks is simple: who is the customer, and what do they do with it? We think in terms of three layers:

Our exposure is curated using concentrated investments across our five frontiers and three layers, which helps us create a bespoke portfolio to meet the time.

Our task is to identify the businesses in each of the frontiers with durable economic advantages, strong revenue quality, credible paths to scale and valuations that leave room for returns. We have already begun redeploying capital. As those investments become reportable, our filings and portfolio disclosures will show where it is going.

The Permanent Job

The list of logos will change. Our job will not.

Find the companies building the next economy before they become obvious. Gain access on sensible terms. Underwrite the business, not the story. Manage concentration. Generate cash. Share a portion with stockholders. Put the balance back to work.

Then begin again.

The famous names were never the whole product. The cycle is the product.

Now we are going back to work discovering what we believe are the next generation of icons.