Justin Ernest has invested nearly $500 million in hot startups using SPVs

Last year, Justin Ernest realized that family offices and smaller investors could not access the fastest-growing AI companies. He had spent over five years at Playground Global, where he learned about deep tech and fundraising. Instead of launching a formal VC fund, which takes 12 to 18 months, he used his network to secure stock allocations in later-stage companies. He then offered these deals to about 30 smaller institutional investors using special purpose vehicles (SPVs). Over the last 12 months, Sabertooth Capital has invested nearly $500 million into 10 companies, including Anthropic, Anduril, and SpaceX. The firm treats each deal as its own fund, often structured as an SPV. Ernest has written checks from $10 million to $275 million, always participating in official funding rounds. Benjamin Wagner, a CIO for a family office, has praised Ernest as an authentic investor with technical knowledge. Wagner tried to invest in PsiQuantum directly, but the company’s CFO suggested Sabertooth. Ernest has built a solid reputation because he is vetted by the companies themselves. He graduated from Harvard Business School and overcame a childhood speech problem. He believes his network is his superpower. He can usually secure investor capital after just four or five phone calls. Sabertooth has already had one big return from Groq, which Nvidia bought for $20 billion. SpaceX plans an IPO this Friday, and Anthropic will go public later this year. Ernest wants to eventually raise a traditional venture fund. He thinks his SPV returns can prove his track record. Despite SPVs lacking the same credibility, he feels he made the right strategic move.