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Industry Ventures puts target on flagship secondaries fund

In 2017, CEO Hans Swildens said Industry Ventures' funds would only exceed $500m if there was 'a massive downmarket correction'.

Venture capital firm Industry Ventures is back in market with its ninth flagship secondaries fund.

The San Francisco-based direct secondaries specialist is targeting $750 million for Industry Ventures Secondary Fund IX, according to a filing with the Securities and Exchange Commission. New Mexico Educational Retirement Board has already committed $50 million, Secondaries Investor reported in June.

The 2016-vintage predecessor Fund VIII took six months to raise $500 million, against a target of $425 million, according to Secondaries Investor data. Investors include the Employees Retirement System of Texas and the Los Angeles Water & Power Employees Retirement Plan, which both committed $40 million.

In 2017, chief executive and founder Hans Swildens told Secondaries Investor: “Our last three [funds] have all been $500 million or less and there’s been a reason for that. The only way that our funds might become larger is if there was a massive downmarket correction and there was distress, fear and uncertainty. Then I could see ourselves deploying more capital.”

In February, the firm held a $125 million final close on Industry Ventures Tech Buyout, a fund of funds that makes primary, early secondary and direct investments in technology-focused buyout funds, Secondaries Investor reported.

In April 2019, Goldman Sachs Asset Management’s Petershill programme bought a minority equity stake in the business.

Around $4.75 billion of venture capital stakes traded hands in 2019, down 6.2 percent year-on-year, according to the annual volume report by intermediary Setter Capital.