Greenspring Associates, a $4.1 billion venture capital investment platform, announced that is has raised $200 million for Greenspring Secondaries Fund II, L.P., its second secondary fund dedicated to venture capital opportunities. The fund is expected to invest in limited partner interests in venture capital funds as well as in growth stage companies principally on a secondary basis. Founded in 2000, Greenspring Associates has been investing in secondary opportunities since the firm’s inception, having served as a liquidity partner for sellers in over 75 transactions. In 2014, the firm launched its first dedicated secondary fund to capitalize on broader subset of opportunities.
Unlike many other firms with secondary strategies, Greenspring Associates exclusively focuses on venture capital investments. According to a recent survey published by Greenhill Cogent, private equity secondary volume hovered around all-time highs of $40 billion in 2015, yet venture capital represented a modest 27% of the total.
“By exclusively allocating to venture capital, where we have built relational and informational advantages over our sixteen year history, we believe that we have the ability to effectively source, diligence and underwrite compelling opportunities.” said Jim Lim, Managing General Partner at Greenspring Associates.
Beyond the specialist approach, GSF II, like its predecessor, will continue to invest in both limited partner interests in funds as well as equity investments into growth stage companies. The firm strives to serve as the liquidity provider of choice for a wide range of parties including limited partners, venture capital general partners, founders and management teams.
“By retaining the flexibility to pursue secondary investments in both funds and direct companies, we feel as though we have the ability to find relative value based on pricing dynamics within the market more broadly,” said John Avirett, Partner at Greenspring Associates.
With a platform that spans fund, direct and secondary investments, and an investment team that navigates across all three verticals, the firm seeks to capitalize on the flywheel effects of an integrated strategy.
“We’re excited about the fund in the context of our venture capital platform. Primary investments in funds and growth stage companies intersect with a wide range of parties seeking liquidity. We hope to leverage these synergies to find compelling investment opportunities,” said Ashton Newhall, Managing General Partner at Greenspring Associates.
About Greenspring Associates
Established in 2000, Greenspring Associates provides venture capital solutions to a diverse group of institutions and individuals worldwide. Through a synergistic platform, Greenspring Associates invests in established and emerging venture capital fund managers, in expansion stage venture-backed companies and in secondary investments in venture capital funds and companies. Greenspring Associates currently manages over $4.1 billion in assets across multiple venture capital investment strategies. For more information on Greenspring Associates, please visit www.greenspringassociates.com.
A Video Conversation with Ashton Newhall, Managing Partner of Greenspring Associates on Lessons Learned - Part V
