News Summary

Goldman Sachs is set to acquire Industry Ventures, a San Francisco-based investment firm with $7 billion in assets under management, for up to $965 million. This move underscores the rising significance of secondary markets and buyouts as traditional venture capital exits face a downturn. The acquisition will be paid through $665 million in cash and equity, with an additional $300 million contingent on performance through 2030. Scheduled to close in the first quarter of next year, the deal will integrate 45 employees from Industry Ventures into Goldman Sachs. The acquisition aims to strengthen Goldman Sachs’ $540 billion alternatives investment platform, recognized as a crucial growth engine. Industry Ventures, led by founder and CEO Hans Swildens, has emphasized the need for venture funds to adapt by exploring non-traditional exits, such as secondary transactions and continuation funds.