The terms for Industry Ventures’ latest secondaries vehicle and fund of funds were revealed in a presentation by the firm to the Dallas Police and Fire Pension System (DPFP) board meeting on 14 April.
Industry Ventures Secondary Fund VIII is seeking a 2x return multiple and a 20 percent internal rate of return (IRR). The fund, which launched this year and is seeking $425 million, will invest 50 percent in direct secondaries, 25 percent in late secondaries limited partnership interests and 25 percent in special purpose vehicles, according to the presentation.
Fund VIII has a 1.5 percent management fee and 17.5 percent carried interest, with a 6 percent preferred return or 15 percent carried interest with no preferred return. Industry Ventures will itself commit 2 percent of the fund, though it was not clear if this was of the target or the hard-cap.
The firm’s fund of funds vehicle, Industry Ventures Partnership Holdings IV, is targeting a 2.5x to 3x multiple and a 20 to 25 percent IRR, according to the documents. Fund IV, which launched in April 2015 and is seeking $200 million, has a 1 percent management fee and a 10 percent carried interest on its early secondaries and special purpose funds investments.
It offers a 6 percent preferred return to limited partners and has a commitment period of four years, according to the presentation. About 40 percent of Fund IV will invest in early secondaries and special purpose funds, 40 percent in primary commitments, and 20 percent in direct co-investments.
Industry Ventures’ funds have delivered a 21.7 percent net IRR since inception, according to the presentation.
The key-man provisions for both funds comprise Hans Swildens, Robert May, Roland Reynolds, Ken Wallace, Justin Burden, Victor Hwang, Lindsay Sharma, Ira Simkhovitch and Amir Malayery.
Industry Ventures declined to comment.
DPFP, which has $2.8 billion in assets under management, agreed to commit $5 million to each of the funds, according to the pension’s meeting minutes.
San Francisco-based Industry Ventures was founded in 2000 and has about $2 billion in assets under management.