Greenspring back with third VC secondaries fund

Baltimore Fire and Police is mulling a commitment to the vehicle.

Greenspring Associates, a venture capital-focused fund of funds, is back in market with its third dedicated secondaries fund, Secondaries Investor has learned.

A spokesman for the Baltimore Fire and Police Employees’ Retirement System, which invested in the firm’s previous two secondaries funds, confirmed that investment manager Summit Financial had recommended it commit $16 million to Greenspring Secondaries Fund III.

A final decision is due next week.

The fund is not yet been registered with the Securities and Exchange Commission and its target is not clear.

According to Greenspring’s website, its secondaries funds invest in limited partnership interests in venture capital funds and direct secondaries positions in growth-stage companies.

Predecessor Secondaries Fund II closed on its $200 million target in June 2016 after around five months of fundraising, according to PEI data.

Investors in that fund include Baltimore Fire and Police, which committed $20 million, and Allegheny County Retirement System, which committed $2 million, according to PEI data.

According to the half-year report from advisory firm Greenhill Cogent, 18 percent of stakes that changed hands in the first six months of this year were in venture capital funds. The average price of these stakes was 82 percent of net asset value, compared with 98 percent for buyout funds and 92 percent for real estate.

Founded in 2000, Maryland-headquartered Greenspring makes primary and secondaries venture capital investments. It has around $5.2 billion in assets under management, according to PEI data.

Greenspring declined to comment.