Industry Ventures has hit the hard-cap on its largest fund yet after around eight months in market.
The San Francisco-headquartered venture capital investor has collected $850 million for Industry Ventures Secondary IX, according to a statement, having launched in July with a target of $750 million. The fund will seek exposure to later-stage VC-backed companies though direct secondaries, limited partnership stakes and GP-led processes.
“We are immensely grateful for the strong support the fund received from our limited partners, both new and existing, particularly during this year’s uncertainty,” said chief executive and founder Hans Swildens. “As we continue to see venture-backed companies remain private longer, the secondary venture market is playing an increasingly critical role in providing liquidity to venture capital stakeholders.”
Limited Partners in the fund include New Hampshire Retirement System and New Mexico Educational Retirement Board, which committed $50 million, and Employees Retirement System of Texas, which committed $40 million, according to Secondaries Investor data.
The 2016-vintage predecessor Fund VIII took six months to raise $500 million, beating a target of $425 million, according to Secondaries Investor data.
Speaking to Secondaries Investor in 2017, Swildens noted a preference for complex transactions: “That could mean buying a portfolio [of direct stakes], spinning out a team or restructuring a fund – things that take three to six months to go through the legal process. Those are the ones that people don’t want to work on or there aren’t many people who have that expertise.”
With the fund close, Industry Ventures has total committed capital under management of $4.5 billion across secondaries, fund of funds and direct co-investments.