David Solomon, chief executive officer of Goldman Sachs Group Inc., during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” in New York, US, on Tuesday, Aug. 6, 2024.
Jeenah Moon | Bloomberg | Getty Images
Goldman Sachs has agreed to acquire Industry Ventures, a venture capital firm with $7 billion in assets under supervision, according to a release from the investment bank.
Goldman is paying $665 million in cash and equity, and up to $300 million more based on the firm’s future performance through 2030, the bank said. The deal is expected to close in the first quarter of 2026.
Goldman Sachs is making the acquisition to bolster its $540 billion alternatives investment platform, part of the self-identified “growth engine” of the investment bank. By identifying and making bets on startups, the venture capital firm can help Goldman create a pipeline of investments for its wealthy clients, as well as provide solutions to tech entrepreneurs.
San Francisco-based Industry Ventures has helped pioneer aspects of the American VC market since its founding 25 years ago, according to Goldman CEO David Solomon.
“Industry Ventures’ trusted relationships and venture capital expertise complement our existing investing franchises and expand opportunities for clients to access the fastest growing companies and sectors in the world,” Solomon said in the release.
“By combining the global resources of Goldman Sachs with the venture capital expertise of Industry Ventures, we are uniquely positioned to serve the increasingly complex needs of entrepreneurs, private technology companies, limited partners, and venture fund managers,” said Hans Swildens, founder and CEO of Industry Ventures.
Industry Ventures has made more than 1,000 investments and said its annual performance was an internal rate of return of 18%.
The bank said it expects that all 45 employees of the venture firm will join Goldman.