OWINGS MILLS, Md.--(BUSINESS WIRE)--Greenspring Associates (“Greenspring”), an $8.8 billion venture capital investment platform, led a successful recapitalization of Altos Ventures IV, LP. (“Altos IV”), a 2008 vintage fund.
In an era when venture-backed companies are staying private longer, this transaction represents a novel approach to managing the liquidity needs of existing investors while allowing Altos IV, already a top-decile performer by net multiple, to continue to generate value in the portfolio.
As part of this process, existing Altos IV limited partners were given the option to tender all or a portion of their holdings to the Greenspring buyer syndicate or to roll their commitment into a continued iteration of the fund. A second pool of capital was created to support the fund’s remaining companies through follow-on financing rounds or secondary purchases of additional securities. In aggregate, capital commitments to the two new vehicles totaled approximately $450 million. Concurrently, existing investors, together with the General Partner of Altos IV, elected to roll forward more than $250 million in net asset value in the continuation vehicle.
“Our intimate knowledge of key value-driving companies and deep relationship with the Altos team allowed us to create a streamlined process solving the liquidity needs of existing investors, while also creating an attractive new investment opportunity for us and our syndicate,” said Jim Lim of Greenspring Associates.
“We are very proud of how this transaction came together. We firmly believe that GP-led secondary transactions will represent a new paradigm in the industry. With the right combination of fund maturity, high-quality remaining companies, and interest in liquidity from existing investors, GP-led processes can serve as elegant solutions for all those involved. We are excited about this investment opportunity and look forward to partnering with additional managers to effectively serve the needs of both General and Limited Partners,” said Ashton Newhall of Greenspring Associates.
Lazard Frères & Co. LLC acted as advisor to Altos Ventures. Cooley LLP served as legal counsel to Altos Ventures IV, L.P. Proskauer Rose LLP acted as legal advisor to Greenspring.
About Greenspring Associates
Greenspring Associates was founded in 2000 to focus solely on venture capital investments. Through a comprehensive platform, the Firm serves as a lifecycle partner for fund managers and entrepreneurs both on a primary and secondary basis across multiple stages, sectors and geographies. Greenspring Associates currently manages approximately $8.8 billion in committed capital across a variety of specialized venture strategies on behalf of a diverse group of global investors. For more information on Greenspring Associates, please visit its website at www.greenspringassociates.com.