Greenspring raises $800m for VC secondaries

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.