Replace: The enterprise secondaries market is booming, as evidenced by how shortly our information to consumers has grown. Our first record, revealed in July, shared particulars for a dozen companies that collectively managed about $52 billion in secondaries capital, together with for enterprise secondaries. Two months later, our information has grown to 18 companies with a mixed whole of almost $66 billion in secondaries capital. New names on our record embrace G Squared, Hamilton Lane, Lightspeed Enterprise Companions, New Enterprise Associates, Rosetta Capital and Siena Secondary Fund.
The enterprise secondaries market has lengthy been a thriller to stakeholders within the ecosystem, principally pushed by the small variety of companies that actively pursue VC secondaries offers.
In contrast with personal fairness secondaries, the enterprise secondaries market is comparatively unknown to GPs and LPs alike. Business Ventures, a 25-year veteran within the VC secondaries market, produced a report in 2022 that estimated the dimensions of the enterprise secondaries market would attain $138 billion in 2023, although as a result of sometimes personal nature of secondaries offers, it’s tough to gauge the dimensions of the market in the present day.
With so little publicized on the subject and a complete of simply three new entrants discovering any relative success up to now two years, many GPs and LPs trying to find liquidity are restricted by their lack of information of who to speak to.
This record of companies that tout VC secondaries as a devoted technique, ordered alphabetically, is Enterprise Capital Journal’s maiden try and rectify this problem. All data was pulled from agency web sites, press releases, regulatory filings, information articles, affiliate title Secondaries Investor and sources on the companies.
Ballast Fairness Companions
AUM: $78m
Devoted secondaries capital: $78m
HQ: Windfall, Rhode Island
Based: 2022
Web site: ballastequitypartners.com
Methods: Direct secondaries, LP pursuits
Newest VC secondaries fund: Ballast held a primary shut at $78 million for Ballast Fairness Companions I in December 2023; the fund is concentrating on $100 million
Transaction varieties: Strip gross sales, LP fund pursuits, LP portfolio gross sales, founder fairness stakes, GP stakes
Transaction vary: $500,000-$5 million for direct firm pursuits; $1 million-$20 million for fund pursuits
Key staff members: Jon Popielarski, David Martirano
Ballast Fairness Companions is a devoted enterprise secondaries investor, investing in each LP fund pursuits and direct firm stakes. The agency was based in 2022 by Jon Popielarski, former director of personal property at Workers’ Retirement System of Rhode Island, and David Martirano, a managing associate of PJC, an early-stage expertise enterprise capital agency. Ballast held a primary shut on $78 million in December 2023 for its debut fund, Ballast Fairness Companions I, which is concentrating on $100 million. The State of Wisconsin Funding Board dedicated $30 million to the automobile.
E1 Ventures
AUM: $20m
Devoted secondaries capital: $20m
HQ: San Francisco
Based: 2023
Web site: e1.vc
Methods: Direct and LP pursuits
Newest VC secondaries fund: E1 closed on $20 million throughout “as much as 10” SPVs, based on agency founder and normal associate Ana Levine.
Transaction varieties: Direct secondaries, LP pursuits
Key staff members: Ana Levine
E1 Ventures is an rising supervisor centered on each enterprise secondaries and multi-stage direct investments in deep tech corporations within the US. The agency raised $20 million throughout plenty of particular function automobiles to put money into enterprise secondaries on a deal-by-deal foundation and is at present elevating an early-stage fund concentrating on $30 million. E1 plans to begin investing in direct secondaries within the coming months. Thus far, it has solely invested in LP-led secondaries offers.
G Squared
AUM: $4bn
Devoted secondaries capital: $2.8bn
HQ: Chicago
Based: 2011
Web site: Gsquared.com
Methods: Major investments, direct secondaries.
Newest VC secondaries fund: Closed on $1.1 billion for G Squared VI, as Enterprise Capital Journal beforehand reported.
Transaction varieties: Direct secondaries, founder shares, worker shares. Fund VI will concentrate on the tech subsectors of software-as-a-service, fintech, insurtech, mobility and shopper web. “The vast majority of G Squared VI can be allotted to secondaries market alternatives, offering development capital and significant liquidity to the following technology of disruptive tech corporations and their stakeholders,” G Squared stated in a press release.
Transaction vary: $100,000 – $50 million
Pattern offers: G Squared has participated in each major and secondary rounds of lots of the greatest start-ups of the previous decade, together with Airbnb, Coursera, Dropbox, Instacart, Lyft, Palantir, Pinterest, Snap, Spotify, Twitter and Uber. Its most up-to-date publicized secondary transaction was its participation within the $500 million sale of shares in model administration software program platform Lucid in June 2021. It participated with Vista Fairness Companions, Tiger World Administration, Iconiq Development and different traders.
Key staff members: Larry Aschebrook, Richard Harris, Spencer McLeod, Tyson Morgan
G Squared was based in 2011 by Larry Aschebrook to put money into growth-stage tech corporations by way of direct secondary and first investing rounds. The Chicago-based agency has raised six flagship funds and two particular conditions funds up to now, most lately closing its sixth flagship secondaries fund at $1.1 billion. G Squared has not publicly disclosed any of the LPs in its newest fund, however the James G Hanes Basis dedicated to Fund V and the Nigerian Sovereign Funding Authority dedicated to Fund IV.
Hamilton Lane
AUM: $920.7bn
Secondaries capital raised, 2018-2023: $10.68bn*
HQ: Conshohocken, Pennsylvania
Based: 1991
Web site: hamiltonlane.com
SI 50, 2023 rating: 13
Methods: Direct secondaries, LP pursuits, GP-led
Newest VC secondaries fund: closed on $5.6 billion for its sixth flagship secondaries fund, which the agency stated is “versatile” by way of committing to secondaries offers throughout asset courses. Additionally held a second shut on $131.36 million for its debut devoted enterprise secondaries fund in November 2023
Transaction varieties: LP pursuits, strip gross sales, tender provides, direct secondaries
Transaction vary: Hamilton Lane sometimes engages in VC secondary transactions between $10 million and $100 million however has the aptitude to do each smaller and bigger offers
Pattern offers: Not obtainable
Key staff members: Antony Anastasiadis, Keith Brittain, Raj Chall, Ryan Cooney, Tom Kerr, Miguel Luiña, Matthew Pellini, Dennis Scharf, Ryan Smith
Hamilton Lane is a worldwide asset supervisor with methods throughout personal fairness, enterprise capital, development fairness, debt, funds of funds and secondaries investments. The agency has amassed greater than $900 billion in AUM with a portion of that going in direction of personal fairness and enterprise capital secondaries. Hamilton Lane is at present elevating its first devoted enterprise secondaries fund, Hamilton Lane Enterprise Entry Fund I, which held a second shut on $131.36 million in November 2023.
Business Ventures
AUM: $8bn
Secondaries capital raised, 2018-2023: $2.49bn*
HQ: San Francisco
Based: 2000
SI 50, 2023 rating: 35
Methods: Fund investments, secondaries, direct investments
Newest VC secondaries fund: Closed on $1.45 billion for Business Ventures Secondary X in September 2023, with LPs together with the Los Angeles Water and Energy Workers’ Retirement Plan, the South Carolina Retirement System Funding Fee and the New Mexico Academic Retirement Board
Transaction varieties: LP pursuits, continuation funds, direct secondaries, founder stakes
Pattern deal: Business Ventures and StepStone Group partnered to amass 12 p.c of tech investor Group 11’s second fund for $20 million in December 2023; it’s unclear how the fund shares have been divided between the 2 companies
Key staff members: Hans Swildens, Justin Burden, Roland Reynolds, Amir Malayery, Jonathan Roosevelt, Lindsay Sharma, Ira Simkhovitch
Business Ventures is a multi-stage enterprise investor and fund of funds supervisor. The agency invests straight in corporations, funds, secondary transactions and decrease mid-market tech buyout funds. Agency founder Hans Swildens informed Enterprise Capital Journal that demand was so sturdy for Business’s tenth VC secondaries fund, it might have raised upwards of $2.5 billion. At $1.45 billion, Business Ventures Secondary X remains to be 70 p.c bigger than its predecessor, which closed on $850 million in 2021.
Isomer Capital
AUM: €542.5m
Devoted secondaries capital: €20m
HQ: London
Based: 2015
Web site: isomercapital.com
Methods: Direct secondaries, LP pursuits, LP stakes
Newest VC secondaries fund: Isomer held a primary shut in April on €20 million for Isomer Secondaries I, which is concentrating on €100 million
Transaction varieties: Direct secondaries, GP-led secondaries, LP-led secondaries, LP fund pursuits
Transaction vary: €1 million- €10 million
Key staff members: Joe Schorge, Chris Wade
Isomer Capital is a Europe-focused fund of funds supervisor increasing into secondaries investing. It primarily focuses on investing in early-stage fund managers throughout Europe, similar to Join Ventures, First Capital, Karma Ventures, Kindred Capital, Seedcamp and Zero Carbon Capital. Isomer additionally pursues secondary offers, shopping for each GP and LP pursuits in corporations and funds. Isomer has closed on roughly €414 million throughout three funds for its fund of funds technique, €100 million for a possibility fund and €20 million in a primary shut for its debut devoted secondaries fund, which is concentrating on €100 million.
Launchbay Capital
AUM: $300m
Devoted secondaries capital: $25m
HQ: London
Based: 2018
Methods: Direct secondaries and investments
Transaction varieties: Small single-asset secondary transactions; it doesn’t purchase fund stakes or do GP- or LP-led secondary offers
Transaction vary: $1 million-$10 million
Key staff members: Alan Vaksman, Benjamin Funk
Launchbay Capital, previously often called Digital Horizon, is a multi-stage enterprise investor concentrating on each direct investments and direct secondaries in fintech and software program infrastructure corporations in Europe and Israel. It invests from an early-stage fund in addition to a devoted secondaries fund. The agency has held a primary shut on $25 million for its secondaries fund, which is concentrating on $100 million.
Lexington Companions
AUM: $75bn
Secondaries capital raised, 2018-2023: $26.8bn*
HQ: New York
Based: 1994
SI 50, 2023 rating: 4
Methods: Direct secondaries, LP-fund pursuits
Transaction varieties: Direct secondaries, GP-led secondaries, LP fund pursuits
Key staff members: Tom Newby, Jennifer Kheng, Matt Hodan
Lexington Companions is a multi-stage personal fairness and enterprise capital investor partaking in co-investments, fund investments and each direct secondaries investments and fund stakes. The agency describes itself as a counterparty to the personal property ecosystem, offering alternatives to LPs that must rebalance their portfolios, adhere to authorities rules, reset on account of overallocation or simply want liquidity. Lexington Companions has collected greater than $66 billion of devoted secondaries capital throughout each personal fairness and enterprise capital secondaries, based on its web site.
Lightspeed Enterprise Companions
AUM: $25bn
Devoted secondaries capital: N/A
HQ: Menlo Park, California
Based: 2000
Web site: lsvp.com
Methods: Direct secondaries, direct investments
Newest VC secondaries fund: Lightspeed doesn’t have a devoted secondaries fund. As an alternative, it does secondaries offers through its $2.36 billion development fund.
Transaction varieties: Direct secondaries
Pattern offers: Up to now three years, Lightspeed has spent $580 million on enterprise secondaries offers, together with shopping for shares in protection tech group Anduril, software program firm Rippling and funds platform Stripe.
Key staff members: Jack Fowler, Michael Romano
Lightspeed Enterprise Companions is a multi-stage enterprise investor specializing in corporations within the enterprise, well being, fintech and shopper industries. The agency has lately began pursuing enterprise secondaries offers, devoting 20 p.c of its $2.36 billion development fund closed in 2022 to secondaries offers. Lightspeed doesn’t point out enterprise secondaries as a selected technique on its web site, nonetheless it has utilized to the US Securities and Alternate Fee to turn into a “registered funding adviser,” which might permit it to make use of greater than 20 p.c of its funds to commerce secondary markets.
New Enterprise Associates
AUM: $25.9bn
Devoted secondaries capital: $468.2m
HQ: Menlo Park, California
Based: 1977
Web site: nea.com
Methods: Direct investments and secondaries.
Newest VC secondaries fund: Closed on $468.2 million from 60 traders for NEA Secondary Alternative Fund LP on July 18, 2024, based on a regulatory submitting. The one identified LP is the San Francisco Workers’ Retirement System, which dedicated $20 million. The fund was raised in simply 15 days, the submitting reveals.
Transaction varieties: NEA has not disclosed the technique of the fund.
Pattern offers: Undisclosed.
Key staff members: Ali Behbahani, Anthony Florence, Mohamad Makhzoumi, Edward Mathers, Scott Sandell, Paul Walker and Rick Yang are named because the managers of NEA SOF GP, the final associate for the fund.
New Enterprise Associates was based in 1977. It’s a major enterprise investor, investing from seed to development stage within the healthcare and expertise sectors. NEA has raised greater than two dozen funds since inception, together with $3 billion for New Enterprise Associates 18 and $3.2 billion for NEA 18 Enterprise Development Fairness, each of which held last closes in January 2023. Among the many largest traders in Fund 18 are the Trainer Retirement System of Texas (with a dedication of $90 million), Nebraska Funding Council ($50 million), Japan Funding Company ($50 million), San Francisco Workers’ Retirement System ($50 million), Los Angeles Metropolis Workers’ Retirement System ($40 million) and California State Lecturers’ Retirement System ($40 million), based on fundraising knowledge from affiliate title Buyouts.
NewView Capital
AUM: $2.6bn
Devoted secondaries capital: $488m
HQ: Burlingame, California
Based: 2018
Web site: nvc.vc
Methods: Direct secondaries, direct investments
Newest VC secondaries fund: NewView is at present elevating its third secondaries fund, NewView Capital Alternatives Fund III, concentrating on $300 million.
Transaction varieties: Direct secondaries, strip gross sales
Pattern offers: In 2018 NewView acquired a portfolio of corporations from New Enterprise Associates for $1.35 billion, together with stakes in shopper genetic testing firm 23andMe, accounting observe administration software program developer Cover, cellular language studying platform Duolingo and cellular ridesharing platform Uber.
Key staff members: Tim Connor, Ben Fu, Ankit Sud, Ravi Viswanathan
NewView Capital is a major and secondary enterprise investor concentrating on growth-stage corporations within the SaaS, fintech, shopper web and synthetic intelligence industries. The agency has closed on simply over $1.5 billion throughout two funds for its major investing technique and slightly below $500 million throughout two funds for its secondary technique. It’s at present elevating a major investing fund concentrating on $350 million and a secondary investing fund concentrating on $300 million. NewView’s alternative funds are raised to put money into “baskets of portfolios being liquidated” by different enterprise companies.
Pinegrove Capital Companions
AUM: $1bn
Devoted secondaries capital: $1bn
HQ: Menlo Park, California
Based: 2023
Methods: Offers “custom-made and scalable secondary liquidity options for enterprise/development GPs and LPs and focuses on investing into main mid- to late-stage personal expertise corporations”
Newest VC secondaries fund: At the moment fundraising for Pinegrove Capital Companions I LP, which is reportedly concentrating on $2 billion
Transaction varieties: GP options embrace continuation funds, partial or full acquisition of legacy corporations, fund restructurings, NAV loans, secondary share purchases and partnerships to supply new major capital; LP options embrace buy or financing of LP pursuits, direct co-investments and unfunded commitments
Transaction vary: Not less than $50 million
Pattern deal: Pinegrove entered into an settlement to amass the funding platform enterprise of SVB Monetary Group, SVB Capital, in Could 2024; the agency declined to supply particulars
Key staff members: Brian Laibow, Gaurav Mathur
Backed by Brookfield Asset Administration and Sequoia Capital’s wealth administration arm, Pinegrove is concentrating on $2 billion for its debut fund. A brochure included with the agency’s Kind ADV states that Pinegrove “gives discretionary administration for funds with an total emphasis on investing in high-quality, late-stage personal expertise corporations. Pinegrove intends to attract upon a big set of liquidity options, together with fairness investments and structured financings, in addition to GP- and LP-facing transactions, to realize publicity to its goal corporations at enticing risk-adjusted returns.” Whereas Pinegrove’s preliminary technique will concentrate on late-stage personal tech corporations, the brochure famous that it “could broaden into different markets over time” and “could decide to handle different funds with totally different funding methods,” based on a earlier VCJ report.
Rosetta Capital
AUM: £139.78m
Secondaries capital raised 2018-2023: $85m
HQ: Haddenham, UK
Based: 2006
Web site: rosettacapital.com
Methods: Direct secondaries, major investments.
Newest VC secondaries Fund: Rosetta Capital is at present elevating its seventh flagship fund with an undisclosed goal.
Transaction varieties: Direct secondaries, founder shares and worker shares
Pattern offers: Rosetta Capital’s most up-to-date public secondary transaction was a sale by Schroders of its whole stake in most cancers therapeutics firm Carrick Therapeutics to Rosetta for an undisclosed quantity in March 2021.
Key staff members: Jonathan Hepple, Ken MacLeod, Michael Forer and Torsten Goesch.
Rosetta Capital is a direct secondaries specialist investing in biotech and medical expertise corporations. The agency was based in 2006 by Jonathan Hepple and Michael Forer, each former entrepreneurs and life sciences traders. Rosetta buys shares in start-ups from different traders, educational establishments, pensions funds and company enterprise capital teams. It additionally invests in later-stage major rounds in corporations that it plans to construct a place in.
Siena Secondary Fund
AUM: €23m
Devoted secondaries capital: €23m
HQ: Tallinn, Estonia
Based: 2021
Web site: siena2ndary.com
Methods: Direct secondaries
Newest VC secondaries Fund: Siena is at present elevating its second flagship fund, which lately held a primary shut in direction of its goal of $50 million.
Transaction varieties: Direct secondaries, founder shares and worker shares.
Transaction vary: €1m-€5m
Key staff members: Rando Rannus, Rain Tamm and Lauri Isotamm.
Siena Secondary Fund is a devoted direct secondaries investor concentrating on post-Collection A corporations primarily based in Central and Japanese Europe and Nordic nations. The agency was based in 2021 by Rando Rannus, Rain Tamm and Lauri Isotamm with the only real function of buying early investor, founder and worker shares in high-growth European startups. Siena has backed a small variety of corporations since its founding, together with unicorns Bolt and Oura.
StepStone Group
AUM: $157bn
Secondaries capital raised, 2018-2023: $20.4bn*
HQ: New York
Based: 2006
SI 50, 2023 rating: 6
Methods: Fund investments, secondaries, co-investments, direct investments
Newest VC secondaries fund: In June, StepStone raised the biggest enterprise capital secondaries fund up to now. It closed on $3.3 billion, far surpassing its goal of $2.6 billion.
Transaction varieties: LP pursuits, strip gross sales, LP tenders, continuation funds, direct secondaries
Pattern offers: Major Enterprise Companions accomplished a $95 million secondary strip sale to StepStone in February 2024; StepStone purchased a 30 p.c stake in PVP Fund I
Key staff members: John Avirett, Brian Borton, Andrew Callahan, John Coelho, Phil Cummins, Deric Emry III, Tom Fitzherbert-Brockholes, Anthony Giambrone, Leyla Holterud, Vincent Hsu, Dale Irby, Seyonne Kang, Jim Lim, Adair Newhall, Ashton Newhall, Lindsay Redfield, Hunter Somerville, Stephen West.
StepStone is a worldwide funding agency specializing in direct, fund of funds, secondary direct and secondary oblique investments. It focuses on the US, North America, Europe, Asia, Latin America and MENA. The agency’s sixth enterprise capital secondaries fund is the the biggest VC secondaries fund ever raised. “One of many items that helped us achieve success is, A, actually nice longstanding relationships with our LPs which were with us for awhile and have had loads of success with us,” John Avirett, a associate within the agency’s enterprise and development division, informed VCJ. “And, B, the market dynamics the place there’s very high-quality property which can be caught privately the place now we have the distinctive skill to put money into them.”
SecondQuarter Ventures
AUM: $A134m
Devoted secondaries capital: $A134m
HQ: Sydney, Australia
Based: 2019
Methods: Direct secondaries, LP pursuits
Newest VC secondaries fund: Held a primary shut in October 2022 on A$83 million for SecondQuarter Ventures Fund II, which is concentrating on A$100 million
Transaction varieties: LP-stakes, GP-stakes, founder shares, worker shares
Pattern offers: SecondQuarter, Fifth Wall and Tiger World Administration acquired an undisclosed stake in Assignar, a building operations administration platform, from OIF Ventures in October 2021
Key staff members: Ian Beatty, Leigh Jasper, Andrew Sypkes, David Tarascio
SecondQuarter Ventures is a devoted enterprise secondaries investor primarily centered on shopping for direct stakes in expertise corporations from founders, staff and early traders. The agency additionally appears to be like to take a position LP-stakes in enterprise funds. SecondQuarter invests solely in corporations primarily based in Australia or New Zealand, or closely related to these geographies. Potential corporations will need to have a valuation of at the least A$75 million ($50 million; €46 million) or extra and income rising at 30 p.c or extra per 12 months.
TempoCap
AUM: $270m
Devoted secondaries capital: $135m
HQ: London
Based: 2016
Methods: Direct secondaries, major investments
Newest VC secondaries fund: Closed TempoCap Development Alternatives II at $135 million
Transaction varieties: Direct secondaries, GP stake gross sales
Pattern offers: Paid $6.7 million in a secondary transaction for a stake in AI platform Streetbees, which was purchased from Nordstar Companions in December 2020
Key staff members: Olav Ostin, Adam Shepherd, Philipp Meindl, Matt Knowles, Pierre Suhrcke
TempoCap is a development and late stage enterprise investor centered on major and secondary investments in expertise corporations primarily based in Europe and the US. The agency closed its debut major investing fund at $226 million in 2021 and has raised $135 million for its devoted secondaries automobile which it’s at present investing out of. TempoCap carries out direct secondaries offers and likewise acquires partial or full portfolios of enterprise funds from GPs, CVCs and hedge funds.
TrueBridge Capital
AUM: $7.5bn
Devoted secondaries capital: $230m
HQ: Chapel Hill, North Carolina
Based: 2011
Methods: Direct secondaries, LP-led secondaries
Newest VC secondaries fund: TrueBridge Secondaries I closed on $230 million in Could 2024. It plans to “construct a blended portfolio of top-performing mid- to late-stage corporations and enterprise fund stakes by way of the quickly rising enterprise secondaries market.”
Transaction varieties: Direct secondaries, LP fund pursuits
Key staff members: Edwin Poston, Kate Simpson, Mel Williams, Andrew Winslow
TrueBridge Capital Companions is a enterprise capital fund of funds supervisor and direct investor based in 2007 by Edwin Poston and Mel Williams. In Could, it closed on $1.6 billion throughout 5 new funds, together with $230 million for its first VC secondaries fund. “The expansion of the enterprise secondaries market is offering restricted companions with new and expanded entry to high-performing property with enhanced visibility and potential shorter remaining maintain intervals along with potential low cost pricing,” associate Andrew Winslow stated in a earlier VCJ report.
Extra reporting by Lawrence Aragon
Editor’s Observe: This story was initially revealed on July 2, 2024. We are going to proceed to replace this information as new data turns into obtainable. If you recognize of a agency or fund that ought to be included, please e mail the writer, Ryan Hibbison.
*Supply: Secondaries Investor 50 rating of greatest fundraisers of devoted secondaries capital
