Vintage beats target for fifth VC secondaries fund

Vintage Secondary Fund V collected about 70% more than its predecessor and was launched and closed in October.

Venture capital firm Vintage Investment Partners has wrapped up fundraising on its fifth dedicated secondaries fund.

The Israel-headquartered firm raised $312.45 million for Vintage Secondary Fund V, according to a filing with the Securities and Exchange Commission. The GP made a 1 percent commitment to the fund, which launched and closed in October.

Fund V had a target of $275 million to acquire limited partnership stakes and direct positions in technology companies in the US, Western Europe, Israel and Canada, managing partner Alan Feld told Secondaries Investor.

“While we have the capacity through our co-investment vehicles to do large transactions, we love smaller deals that are too small for all the big secondary funds to do,” he said.

Feld added that he is proud that in 18 years, the firm has not backed off a deal or renegotiated a letter of intent. “Sellers and GPs know that once we give an offer, we are committed to getting it done,” he said.

Vintage also makes secondaries investments through VC funds of funds. The sixth incarnation closed recently, according to Feld.

Predecessor Vintage Secondary IV collected $215 million by final close in August 2017, according to Secondaries Investor data. Vintage has about $2.3 billion in assets under management across funds of funds, secondaries and co-investments.

Venture capital and growth accounted for 23 percent, or $10.6 billion, of secondaries transaction volumes in the first half of this year, according to investment bank Greenhill’s mid-year report. This compares with 19 percent, or $11.4 billion, for the whole of 2020.

The rapid growth of VC-backed companies has pushed many institutional LPs close to their allocation limits, encouraging them to sell down portfolios at the top of the market, Secondaries Investor noted in mid-October.