Industry Ventures Secondary IX closes on $850m

Alessia Argentieri
29 March 2021

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US-headquartered venture secondaries specialist Industry Ventures has held a final close for Industry Ventures Secondary IX on its $850m hard-cap.

The new fund brings the firm's total committed capital under management to $4.5bn.

The vehicle is larger than its predecessor, Industry Ventures Secondary VIII, which closed on its $500m hard-cap in June 2016. Additionally, the firm raised a $200m Special Opportunities Fund which has invested in larger transactions in parallel to the main fund.

"We are immensely grateful for the strong support the fund received from our limited partners, both new and existing, particularly during this year's uncertainty," said Hans Swildens, CEO and founder of Industry Ventures. "As we continue to see venture-backed companies remain private longer, the secondary venture market is playing an increasingly critical role in providing liquidity to venture capital stakeholders."

Unquote recently reported on the renewed appeal for venture secondaries, boosted by startups staying private for longer and investors' desire to capitalise on greater value creation in the later stages of VC funds.

Industry Ventures invests across all stages of the venture capital lifecycle through complementary fund strategies. It specialises in acquiring secondaries direct investments by purchasing entire portfolios of investments and single positions in individual companies. It also creates special purpose vehicles (SPVs) to purchase investments with general partners.

The firm is headquartered in San Francisco, with offices in Washington DC and London. Since its inception in 2000, Industry Ventures has completed more than 400 secondaries investments.

Investors
Industry Ventures Secondary IX's LP base is composed of a diversified mix of institutions and private investors, including public and corporate pension funds, endowments, foundations, financial institutions and family offices. The capital raised by the fund also includes a "sizable" commitment from its general partner.

Investments
The fund will seek exposure to later-stage companies through flexible investment structures, such as direct secondaries, secondary LP interests and special situations, including direct portfolios and tail-end funds.