Goldman Sachs Boosts Alternatives Platform with $965M Industry Ventures Acquisition
Goldman Sachs (NYSE: GS) has bolstered its alternatives investing platform with the acquisition of Industry Ventures. The deal, worth up to $965 million, sees the prominent investment firm acquiring a secondary market specialist with a strong track record and a significant asset base.
Industry Ventures, founded by Hans Swildens, has managed $7 billion in assets since its inception in 2000. The firm has made over 1,000 secondary and primary investments, demonstrating its prowess in the industry. Notably, its realized performance stands at an impressive net internal rate of return of 18% and a net realized multiple of invested capital (MOIC) of 2.2x since inception.
The acquisition, which includes an upfront payment of $665 million in cash and equity, with an additional $300 million contingent on performance, will see Industry Ventures become part of Goldman Sachs' External Investing Group. All 45 employees, including Swildens and other managing directors, are expected to join Goldman Sachs, with Swildens, Justin Burden, and Roland Reynolds set to become partners within Goldman Sachs Asset Management.
The acquisition is expected to diversify and accelerate the growth of Goldman's $540 billion alternatives investing platform. It will complement Goldman's existing investing franchises and expand opportunities for clients to access growing companies and sectors. Following the announcement, Goldman Sachs stock edged up 0.2% in after-hours trading.
