Goldman Sachs Group has announced its intention to acquire Industry Ventures, a highly regarded venture capital platform known for its extensive investments throughout all stages of the VC lifecycle. Industry Ventures manages an impressive $7 billion in assets under supervision (AUS) and has executed over 1,000 primary and secondary investments since its inception in 2000. The firm boasts a remarkable net internal rate of return (IRR) of 18% and a net realized multiple on invested capital (MOIC) of 2.2X, demonstrating its effectiveness in generating returns for its investors.
Industry Ventures has pioneered several critical segments within the venture capital market, setting it apart from competitors. And its innovative approaches include providing secondary liquidity solutions, which allow investors to gain liquidity before the end of an investment’s lifecycle. And it has a track record of seeding emerging venture capital funds, thereby supporting the growth of new firms in the industry.
The company also engages in co-investing directly in early-stage, high-growth businesses, leveraging pro-rata rights to maintain its investment percentages. Industry Ventures invests at the intersection of venture capital and technology buyouts, securing a diverse positioning in the market.
With one of the largest portfolios of venture capital partnerships in the United States, Industry Ventures spans investments from the seed stage to late-stage growth. The firm participates in over 800 venture capital and technology-focused funds, partnering with over 325 venture capital firms as a value-added limited partner, liquidity solutions provider, and co-investment partner. This expansive network enhances its ability to maximize investment outcomes.
Upon completion of the acquisition, Industry Ventures will function within Goldman Sachs’ External Manager Platform, known as the External Investing Group (XIG). XIG is a significant player in the investment landscape, managing over $450 billion in AUS across a variety of traditional and alternative strategies. This division is particularly recognized in private markets for its leadership in co-investments, alternative manager strategies, and a dedicated Vintage Strategies secondaries platform, alongside its Petershill GP stakes business. By integrating Industry Ventures into its structure, Goldman Sachs will enhance its investment strategy with desirable technology capabilities, ultimately benefiting its global client base.
The incorporation of Industry Ventures is a strategic move that further diversifies Goldman Sachs’ substantial $540 billion alternatives investment platform. This platform encompasses direct investments across a myriad of sectors, including growth equity, buyouts, real estate, infrastructure, life sciences, sustainability initiatives, and private credit, providing a broad spectrum of options for its investors.
Goldman Sachs Asset Management has a long-standing relationship with Industry Ventures, serving as a limited partner in its funds for over two decades. The firm has also offered a range of Industry Ventures’ strategies to its clients for the past ten years, demonstrating a deep commitment to collaboration. And Petershill Partners has maintained a minority stake in Industry Ventures on behalf of fund investors since 2019, further solidifying the connection between the firms. In this transaction, Goldman Sachs plans to acquire 100% of Industry Ventures’ equity.
This acquisition aims to enhance Goldman Sachs’ capability to deliver superior solutions to technology entrepreneurs. For decades, Goldman Sachs has established itself as a premier player in global wealth management and has built a market-leading franchise in technology, media, and telecommunications (TMT) investment banking. The firm is dedicated to providing scaled investment capabilities across various asset classes, facilitating access to private banking and lending services, and offering appealing co-investment opportunities, alongside innovative capital and advisory services to clients across the globe.
As a part of this acquisition, it is anticipated that all 45 employees currently working at Industry Ventures will transition to Goldman Sachs. Key personnel, including Hans Swildens, the Founder and Chief Executive Officer of Industry Ventures, along with Senior Managing Directors Justin Burden and Roland Reynolds, will assume partner roles within Goldman Sachs Asset Management, further integrating Industry Ventures’ expertise into the larger organization.
The financial structure of the transaction will involve an initial consideration of $665 million in cash and equity, payable at the closing of the deal. In addition, there will be contingent consideration of up to $300 million, which will be dispensed in both cash and equity based on Industry Ventures’ performance through the year 2030.
This strategic acquisition is expected to finalize in the first quarter of 2026, pending the necessary regulatory approvals and other standard conditions associated with such transactions.
Advisors/counsel: Goldman Sachs was advised by Goldman Sachs Global Banking and Markets as financial advisor and Wachtell, Lipton, Rosen & Katz and Weil, Gotshal & Manges as legal counsel. Oppenheimer advised Industry Ventures as financial advisor and Dechert and Cooley as legal counsel.
KEY QUOTES:
“Industry Ventures pioneered venture secondary investing and early-stage hybrid funds, areas that are rapidly expanding as companies stay private longer and investors seek new forms of liquidity. Industry Ventures’ trusted relationships and venture capital expertise complement our existing investing franchises and expand opportunities for clients to access the fastest growing companies and sectors in the world.”
David Solomon, Chairman and Chief Executive Officer of Goldman Sachs
“We believe the venture capital market is at a pivotal inflection point as technology and artificial intelligence reshape the world. By combining the global resources of Goldman Sachs with the venture capital expertise of Industry Ventures, we are uniquely positioned to serve the increasingly complex needs of entrepreneurs, private technology companies, limited partners, and venture fund managers—while fueling the continued growth of this critical economic engine.”
Hans Swildens, Founder and Chief Executive Officer of Industry Ventures
