The New York-headquartered firm has added a venture capital business, paying $665 million to acquire the organisation, with an added consideration of up to $300 million depending on how well it performs through the end of the decade.
Goldman Sachs
has agreed to buy Industry Ventures, a venture capital platform
with $7 billion of assets under supervision.
Under terms of the deal, Goldman Sachs will acquire all of
Industry Ventures’ equity, obtaining a minority stake from
Petershill Partners, which had had the ownership stake on behalf
of funds since 2019. Goldman Sachs Asset Management has been a
limited partner (LP) in Industry Ventures’ funds for more than 20
years.
Goldman Sachs will pay $665 million in cash and equity payable at
closing; and an additional contingent consideration of up to $300
million, payable in both cash and equity, based on Industry
Ventures’ future performance through 2030. The transaction is
expected to close in the first quarter of 2026, subject to
regulatory approval and conditions, a statement from the firms
about the deal said.
The acquired firm will sit inside Goldman Sachs’ external manager
platform, the External Investing Group (XIG), which has more than
$450 billion in assets under supervision (AuS) across traditional
and alternative strategies.
As part of the acquisition, it is expected that all 45 employees
will join Goldman Sachs, the statement said. Hans Swildens,
Industry Ventures founder and CEO, Justin Burden, senior managing
director, and Roland Reynolds, senior managing director, will be
appointed partners within Goldman Sachs Asset Management.
Industry Ventures has made more than 1,000 secondary and primary
investments since it was founded in 2000. It calculates its
realised performance across its platform as an internal rate of
return of 18 per cent since its inception.
“Industry Ventures pioneered venture secondary investing and
early-stage hybrid funds, areas that are rapidly expanding as
companies stay private longer and investors seek new forms of
liquidity,” David Solomon, chairman and CEO of Goldman Sachs,
said. “Industry Ventures’ trusted relationships and venture
capital expertise complement our existing investing franchises
and expand opportunities for clients to access the fastest
growing companies and sectors in the world.”
The VC firm has, it says, one of the largest portfolios of
venture capital partnerships from the seed stage to late-stage
growth stage in the US, representing investments in more than 800
VC and technology-focused funds. It works with more than 325 VC
firms as a limited partner, liquidity solutions provider and
co-investment partner.
Goldman Sachs was advised by Goldman Sachs Global Banking and
Markets as financial advisor and Wachtell, Lipton, Rosen & Katz
and Weil, Gotshal & Manges as legal counsel. Industry Ventures
was advised by Oppenheimer & Co, as financial advisor and Dechert
and Cooley as legal counsel.
Source: wealthbriefing.com
