VCFA Group, a pioneer in the secondary private equity industry, announced the closing of its latest fund VCFA Venture Partners VII, L.P. (VCFA VP VII), with capital commitments totaling $122.5 million. This fund continues VCFA’s leadership in the secondary market, focusing on smaller and more complex purchases of later-stage venture capital and growth equity assets.
The closing of VCFA VP VII marks a significant milestone in the firm’s four decades in operation. Founded in 1982 by Dayton Carr, VCFA is known for being the first firm focused on secondary private equity.
Carr passed away in 2020 during the fundraiser for the predecessor fund, VCFA Venture Partners VI, L.P. (VCFA VP VI). And the firm commenced a succession plan with David Tom and Andrew Reilly assuming leadership and ownership of VCFA and culminating with a final closing of VCFA VP VI in March 2021 with $107.2 million in capital commitments. In total, VCFA Group has now raised $229.7 million in its flagship secondary fund strategy under David and Drew. This transition marks the continuation of VCFA’s legacy of pioneering the secondary private equity space.
In connection with the new funding, VCFA is also promoting two investment team members. And Andy Coke, who joined VCFA in 2019, was promoted from Senior Associate to Vice President. Andy graduated from Brown University and held equity research positions before joining VCFA. Colin Moffet – who joined VCFA from Princeton in 2021 – was promoted from Analyst to Associate.
VCFA VP VII targets deals involving seasoned venture capital and growth equity assets, where the need for liquidity or portfolio realignment creates opportunities for secondary investors. And these deals are often more nuanced, requiring a deep understanding of portfolio companies’ operational and financial needs and the intricate capital structures of these assets.
KEY QUOTES:
“We are thankful to the investors who have supported us through multiple funds and new investors who have put their trust in us. The demand for liquidity solutions for mature venture and growth-stage fund interests at the smaller end of the market is greater than I have ever seen. We are seeing more sellers looking for tailored, flexible capital solutions below $50 million in size. With VCFA VP VII closed, we are well-positioned to build on our leadership in the secondary market and continue growing VCFA into a next-generation firm.”
– David Tom, Managing Member of VCFA
“We are proud to carry forward the vision Dayton Carr established more than four decades ago. Our team’s deep experience, combined with our track record of success in navigating complex transactions, uniquely positions us to execute on this strategy. As we look ahead, we are excited to expand on our core venture growth secondary strategy while also exploring complementary secondary strategies that will continue to diversify our offerings and meet the evolving needs of our investors.”
– Andrew Reilly, Managing Member of VCFA
