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Goldman Sachs Buys Venture Capital Firm Industry Ventures
Goldman Sachs will pay $665 million upfront and up to $300 million more based on Industry Ventures’ performance to enhance its $540 billion alternatives platform.
- On Monday, Goldman Sachs agreed to acquire Industry Ventures, a 25-year-old San Francisco-based investment firm with $7 billion in assets under management, paying $665 million plus up to $300 million tied to performance through 2030.
- Amid a prolonged IPO drought, venture funds are shifting to non-traditional exits, with at least five major venture funds hiring staff to manufacture secondary transactions, continuation funds and buyouts.
- Industry Ventures says it has made more than 1,000 investments, holds stakes in more than 700 venture firms, and reports an 18% internal rate of return, while founder Hans Swildens said brand-name funds are rethinking liquidity structures.
- The deal is expected to close in the first quarter of next year and all 45 Industry Ventures employees are expected to join Goldman, expanding client access to fast-growing sectors, David Solomon said.
- The acquisition bolsters Goldman’s $540 billion alternatives investment platform, and with tech buyout funds now accounting for 25% of all liquidity, it may increase demand for alternatives strategies.
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Total News Sources18
Leaning Left2Leaning Right1Center6Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 22%
C 67%
11%
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