Greenspring Associates, a venture capital investment platform with over $10 billion in assets under management, announced that it has raised $800 million for Greenspring Secondaries Fund IV, L.P. (“GSF IV”), the firm’s fourth secondary venture capital fund. The oversubscribed fund had strong participation from existing investors, as well as select new institutional limited partners.
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Building on its three predecessor funds, GSF IV is expected to invest in expansion stage companies as well as limited partner interests in venture capital funds, principally through secondary transactions. Founded in 2000, the firm has been investing in secondary opportunities since its inception, having served as a liquidity partner for sellers in over 175 transactions as of September 30, 2019. In 2014, Greenspring Associates launched its first dedicated secondary fund to capitalize on a broader subset of opportunities.
In an environment where venture-backed companies are staying private longer and venture capital General Partners are becoming increasingly proactive in offering existing investors secondary liquidity options, Greenspring Associates believes that its position as one of the largest and most established fund and direct investors provides it with an informational and relationship advantage that will continue to enable it to effectively source, diligence and underwrite compelling secondary investment opportunities.
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Unlike many other firms with secondary strategies, Greenspring Associates exclusively focuses on venture capital investments. With a platform that spans fund and direct investments on both a primary and secondary basis and an investment team that navigates across these verticals globally, the firm seeks to capitalize on the flywheel effects of an integrated strategy.
“As we embark on our 20th year as a value-added, lifecycle partner for fund managers and entrepreneurs, we are deeply humbled by the support of both new and existing investors, for whom it is our mission to deliver outsized returns through the financing of innovation,” said Ashton Newhall, Managing General Partner at Greenspring Associates.
“With an exclusive focus on venture capital and a flexible approach to secondary investing, targeting both fund and direct interests, we believe that we have the ability to leverage the synergies of our platform to generate and evaluate robust dealflow, with an eye to pricing dynamics within the market more broadly.” said Jim Lim, Managing General Partner at Greenspring Associates.
