Industry Ventures is on track toward its anticipated investment pace for the year, founder and chief executive officer Hans Swildens told Secondaries Investor.
The firm has deployed about a quarter of its seventh secondaries fund, which closed on $425 million last year. Fund VII is Industry Ventures’ largest to date and received commitments from the New Hampshire Retirement System and the South Carolina Retirement System, according to PEI’s Research and Analytics division.
About 15 percent of the fund had been deployed as of August. Each deal averages between $5 million and $10 million and 90 percent of the investments will be made in the US. The remaining 10 percent will focus on European investments, primarily venture capital opportunities in London.
Industry Ventures has also deployed about 50 percent of its third fund of funds, which closed on $170 million in September. Industry Ventures Partnership Holdings III was oversubscribed, surpassing its initial $125 million target. Limited partners include The City of San Jose Police and Fire Department Retirement Fund, which committed $15 million to the fund in September.
Fund III makes primary commitments and early secondaries purchases in small venture capital funds, as well as direct investments alongside managers.
As a firm Industry Ventures makes direct secondaries investments and acquires limited partner stakes in venture capital funds. This year Swildens has seen an increasing number of opportunities in employee liquidity – current or former employees who want to sell their shares in private companies. He said these types of transactions are no longer considered taboo and are embraced by the companies that know how to handle it or transact with the right buyer.