Greenspring Associates, a venture capital-focused fund of funds, is upscaling with its latest dedicated secondaries fund.
The Maryland-headquartered firm is targeting $600 million for Greenspring Secondaries Fund IV, according to a filing with the Securities and Exchange Commission, amounting to an 85 percent increase on the amount targeted for its predecessor.
Secondaries Investor reported in June that Greenspring was back with its fourth fund, 18 months after the launch of its predecessor. One investor is Metropolitan Government of Nashville and Davidson County Employees’ Benefit Trust Fund, which committed $17.2 million.
Greenspring Secondaries Fund III launched in 2017 seeking $325 million. It is unclear how much Fund III raised; the firm did not return a request for comment.
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. Investors were given the chance to sell all or part of their holdings to Greenspring or roll into a continuation vehicle. The deal was worth $450 million, including follow-on capital.
Greenspring’s secondaries funds invest in limited partnership interests in venture capital funds and direct secondaries positions in growth-stage companies. The firm has around $12.5 billion in assets under management, according to Secondaries Investor data.
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. VC accounted for just 1 percent of GP-led transactions by value in the first half of the year.