Goldman Sachs Group Inc (NYSE:GS) on Monday agreed to acquire Industry Ventures, a venture capital platform managing $7 billion in assets under supervision.
Industry Ventures, founded in 2000, has made more than 1,000 secondary and primary investments. The firm reports a realized net internal rate of return of 18% and a net realized multiple on invested capital of 2.2 times since inception.
The acquisition, expected to close in Q1 2025, pending regulatory approvals, is expected to complement the bank’s existing investing franchises and expand client access to growth opportunities worldwide, Goldman Sachs said.
The combination of Goldman’s global resources and Industry Ventures’ venture experience will position the firm to better serve entrepreneurs, private technology companies and investors as technology and artificial intelligence reshape markets, said Hans Swildens, founder and CEO of Industry Ventures.
Industry Ventures will become part of Goldman Sachs’ External Investing Group, which oversees more than $450 billion in assets across traditional and alternative strategies. The acquisition will expand Goldman Sachs’ $540 billion alternatives platform by adding a leading technology investment capability.
All 45 Industry Ventures employees are expected to join Goldman Sachs. Swildens, along with Senior Managing Directors Justin Burden and Roland Reynolds, will become partners within Goldman Sachs Asset Management.
Under the deal, Goldman Sachs will pay $665 million in cash and equity at closing, with up to an additional $300 million in contingent consideration based on Industry Ventures’ performance through 2030.
Source :
https://www.investing.com/news/stock-market-news/goldman-sachs-acquires-industry-ventures-4284602
