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Greenspring raises $800m for VC secondaries

Secondaries Investor reported in August that the VC-focused firm was targeting $600m for Fund IV, an 85% increase on the amount sought by its predecessor.

Greenspring Associates has surpassed the target on its latest secondaries fund after around seven months in market.

The venture capital firm has raised $800 million for Greenspring Secondaries Fund IV through four separate vehicles, according to filings with the Securities and Exchange Commission. Secondaries Investor reported in August that Greenspring was targeting $600 million for the fund, an 85 percent increase on the target of its predecessor.

It is unclear if this represents a final close. Greenspring did not return a request for comment.

The Owing Mills, Maryland-headquartered firm has listed 11 placement agents on the filings, including Sydney-headquartered PAS Advisory Services and Freiburg, Germany-headquartered Kronstein Alternative Investment Advisors.

Investors include Metropolitan Government of Nashville and Davidson County Employees’ Benefit Trust Fund, which committed $17.2 million, according to Secondaries Investor data.

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

In May, sister publication Buyouts reported that Greenspring had led the restructuring of Altos Ventures’ fourth fund, an $86.5 million, 2008-vintage VC vehicle. The deal was worth $450 million, including follow-on capital.

Predecessor Greenspring Secondaries Fund III launched in 2017 seeking $325 million. The fund delivered a net total-value to-paid-in multiple of 1.07 and internal rate of return of 13.09 percent as of 31 July, according to a presentation prepared by advisor NEPC for City of Baltimore Fire & Police Employees’ Retirement System.

Venture capital stakes accounted for 17 percent of secondaries transaction volumes in the first half of this year, a decrease of 12 percentage points compared with 2018, according to research by advisor Greenhill.