Industry Ventures seeks its ninth secondaries fund as interest grows for the strategy

New Mexico Educational Retirement Board confirmed its $50m commitment to Industry Ventures Secondary Fund IX.

New Mexico Educational Retirement Board confirmed that it committed $50 million to Industry Ventures Secondary Fund IX.

The size of the San Francisco firm’s fund is not known. Industry Ventures did not respond to a request for comment.

The firm raised its previous $500 million secondaries fund in 2016.

In 2017, Hans Swildens, CEO and founder, told Secondaries Investor, an affiliate publication of Venture Capital Journal, “our last three [funds] have all been $500 million or less and there’s been a reason for that. The only way that our funds might become larger is if there was a massive downmarket correction and there was distress, fear and uncertainty. Then I could see ourselves deploying more capital.”

Since the economy is currently in a downturn amid the covid-19 pandemic, Industry Ventures is possibly planning to increase the size of its secondaries fund.

Kelly DePonte, managing director of placement agent Probitas Partners, said that he is currently seeing some increased interest in VC secondaries, but not as much as for secondary buyouts.

Industry Ventures’ secondaries fund strategy is primarily focused on acquiring limited partnership interests from investors looking to relieve unfunded liabilities, rebalance portfolios or realize returns.

The firm manages $3.6 billion in AUMs across four strategies, which beside secondaries, include direct investments in mid-stage companies, early-stage hybrid fund of funds and a tech buyout fund.

Secondaries is the firm’s best-known and longest-running strategy.

In addition to New Mexico Educational, public investors in the firm’s previous secondaries fund included Dallas Police and Fire Pension System, Employee Retirement System of Texas, Los Angeles Water & Power Employees Retirement Plan and Ohio Public Employees Retirement System.

As of March 2020, Santa Fe-based New Mexico Educational managed a portfolio of $13.6 billion. The pension allocation to private equity was 15.7 percent slightly exceeding its target allocation of 15 percent.