"Goldman Sachs has agreed to acquire Industry Ventures, a 25-year-old, San Francisco-based investment firm with $7 billion in assets under management, CNBC was first to report Monday, in a deal that underscores the growing importance of secondary markets and buyouts as traditional venture exits remain sluggish. The investment bank is paying $665 million in cash and equity, with up to $300 million more tied to the firm's performance through 2030, according to a release from Goldman."
""Just going out and seeing companies, putting them in your fund and then waiting for an IPO or strategic M&A exit probably won't work anymore," he said in the podcast interview. "[VCs] need to start working on alternative liquidity solutions." At the time - in April - he noted that at least five major venture funds had hired full-time staff dedicated to manufacturing non-traditional exits, including secondary transactions, continuation funds, and buyouts."
Goldman Sachs will acquire Industry Ventures, a 25-year-old San Francisco investment firm managing $7 billion, for $665 million in cash and equity with up to $300 million additional earnout tied to performance through 2030. The deal is expected to close in the first quarter of next year and will bring all 45 Industry Ventures employees into Goldman. The acquisition bolsters Goldman's $540 billion alternatives investment platform and responds to a shift toward secondary markets, continuation funds, and buyouts as primary IPO and M&A exits for venture-backed companies slow. Major venture funds are building internal capabilities to manufacture non-traditional liquidity solutions.
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