Goldman Sachs, a leading US investment bank, has agreed to acquire Industry Ventures, a San Francisco-based investment fund with $7 billion in assets under management. According to CNBC, the total value of the deal is estimated at $665 million (in cash and shares), plus up to $300 million in performance-based bonuses through 2030. The deal is expected to close in the first quarter of next year, and all 45 of the fund’s employees will transfer to Goldman Sachs.
Founded in 1999, Industry Ventures has specialized in secondary markets and technology company acquisitions in recent years. The fund’s founder and CEO, Hans Swildens, said that such unconventional exits account for 25% of the liquidity in the venture ecosystem amid the stagnation of the IPO market.
Goldman Sachs is making this acquisition in order to expand its $540 billion alternative investment platform. “Industry Ventures’ experience and connections will provide our clients with access to some of the world’s fastest-growing technology companies,” said David Solomon, CEO of the bank.
Industry Ventures has made more than 1,000 investments, invested in more than 700 venture funds, and has delivered an average annualized rate of return (IRR) of 18%.
