Goldman Sachs acquires industry -ventures for up to $ 965 million

Goldman Sachs has agreed to acquire industrial events, a 25-year-old, San Francisco-based investment company with $ 7 billion in assets under management, CNBC was first to report Monday. The trade emphasizes the growing significance of secondary markets and acquisitions when traditional venture outputs remain sluggish.

The investment bank pays $ 665 million in cash and equity with up to $ 300 million more tied to the company’s performance through 2030, according to a release from Goldman. The trade is expected to close in the first quarter next year, and all 45 industry -events -employees are expected to join Goldman.

We have reached Swildens for more information.

The acquisition comes as venture funds are increasingly addressing non-traditional exits in the midst of a long-term listed drought, which only now seems to be breaking. When he talked about Techcrunch’s strictlyvc download -podcast earlier this year, the industry’s ventures -founder and CEO Hans Swildens said that technical buyout funds now account for 25% of all liquidity throughout the Venture -Ecosystem -“A huge part of the liquidity,” he said.

Swild’s explained that venture leaders are forced to customize their approach. “Just go out and see companies, put them in your fund and then wait for a stock exchange listing or strategic M&A output probably won’t work anymore,” he said in the Podcast interview. “[VCs] Need to start working on alternative liquidity solutions. “

At that time-in April, he marked that at least five larger venture funds had hired full-time employees dedicated to the manufacture of non-traditional exits, including secondary transactions, continuation funds and acquisitions. “All brand names are all staffing and thinking through liquidity structures,” said Swildens.

Goldman makes the acquisition to strengthen its $ 540 billion alternatives investment platform, which the bank has identified as an important growth engine.

“Industry Ventures’ trusted relationships and venture capital expertise complements our existing investment franchises and expands the opportunities for clients to access the fastest growing companies and sectors in the world,” Goldman CEO David Solomon said in a prepared statement. “By combining the global resources of Goldman Sachs with Venture Capital expertise in industry ventures, we are uniquely placed to meet the increasingly complex needs of entrepreneurs, private technology companies, limited partners and venture finders,” the statement continued.

Industry Ventures says it has made more than 1,000 investments, has efforts in more than 700 venture companies and that it boasts an internal return of 18%.