Marking a daring foray by the Wall Street behemoth into venture-capital infrastructure, Goldman Sachs is poised to buy Industry Ventures in a deal valued at up to US $965 million.
Managing about US $7 billion in assets, Industry Ventures
In the first quarter next year, the agreement should be completed; every one of Industry’s 45 employees, Goldman’s enlarged alternatives business is expected to include ventures. Goldman Sachs claims the purchase will help it to reinforce its capacity to serve customers looking for exposure and deepen its presence in the alternatives sector for startups and venture plans that are growing swiftly to diversify capital beyond the US
Venture companies are more actively investigating secondary markets, continuation funds, and other liquidity methods since conventional exit channels such as IPOs and strategic M&A have slowed. Hans Swildens
Goldman’s purchase is part of its bigger alternatives initiative, tapping into a $540 billion investment platform the company sees as a major growth vector. Goldman’s institutional size will be combined with Industry Ventures’ venture connections and sector knowledge by the company. Industrial, with investments in more than a thousand businesses, backed over 700 venture companies, and claimed an internal rate of return of about 18%.
Goldman Sachs
