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Industry Ventures raises $400m for secondaries

The San Francisco secondaries firm exceeded its sixth fund’s $300m target by attracting new LPs and re-ups.

Industry Ventures has closed on its $400 million hard-cap for its sixth secondaries fund focused on providing liquidity to venture capital and technology growth equity.

The San Francisco-based firm began marketing the fund at the end of last year and attracted new investors as well as re-ups. Fund VI was oversubscribed and exceeded its initial $300 million target.

Capstone Partners worked as a global placement agent for the fund.

The fund is well-positioned to capitalise on recent surges in the secondaries and technology sectors, managing director and founder Hans Swildens told Private Equity International. “We believe our flexibility investing as a general partner into secondary directs and as a limited partner into VC funds and special situations will be key.”

Triago, a placement agent and secondaries advisor, has estimated that the secondaries market will hit a record volume of $25 billion or more, while other sources in the secondaries industry have said deal volume could hit as high as $40 billion by the end of this year.

Industry Ventures had similar success marketing its last fund, which amended its initial $250 million fundraising target to accommodate a new limited partner. The fund closed on $265 million in March, 2009.

Industry Ventures typically does liquidity investments in secondary direct, limited partnership interests and special situations for venture capital. The firm holds interests in a variety of companies, including online music player Pandora and social media sites Facebook and Twitter.

Industry Ventures was founded in 2000 and manages $1 billion of institutional capital.