Investor Ron Baron, one of Tesla’s early investors, has been backing Elon Musk for many years. Now, his Baron fund will give investors access to Musk’s private companies.

Baron has invested in publicly traded Tesla, as well as privately held X, SpaceX, and xAI. But he wants to give other investors the same opportunity. Baron Capital Management has launched new funds to invest in xAI and SpaceX, according to a Bloomberg report.

“We are doing this because we want people to know about our mutual funds,” Baron told Bloomberg. “I want my business to last for 100 years.”

These Baron funds will not charge high fees. BaronX Cayman launched in April, and BaronxAI launched in May. Both funds seek to raise funds from investors, pension plans, and endowments. They charge a management fee of around 1% per annum. Investors’ money has been frozen for eight years.

Baron first invested in SpaceX in 2017 and has since grown the value of its investment significantly. In June 2024, the space company was valued at $210 billion. At the moment, Baron owns approximately 1.2% of the company. Baron believes SpaceX can become more valuable than Tesla.

“I think SpaceX has a chance to be even bigger than Tesla in the 2030s,” Baron said at the time.

Baron expects SpaceX to reach a valuation of $250 billion if the company goes public within three years. He believes that by 2030, Musk’s space company could reach a valuation of $500-600 billion.

“And then in the 2030s, that’s when I expect to make another 10 times our money.”

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