David Solomon, CEO of Goldman Sachs Group Inc., during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” in New York, U.S., Tuesday, August 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 statement from the investment bank.
Goldman will pay $665 million in cash and equity, and up to $300 million more based on the company’s future performance through 2030, the bank said. The deal is expected to be finalized in the first quarter of 2026.
Goldman Sachs is making the acquisition to strengthen its $540 billion alternative investment platform, part of the investment bank’s self-identified “growth engine.” By identifying and betting on startups, the venture capital firm can help Goldman create an investment pipeline for its wealthy clients, as well as provide solutions for tech entrepreneurs.
San Francisco-based Industry Ventures has contributed to pioneering aspects of the U.S. venture capital market since its founding 25 years ago, according to Goldman CEO David Solomon.
“Industry Ventures’ trusted relationships and venture capital expertise complement our existing investment franchises and expand opportunities for clients to access the world’s fastest-growing companies and industries,” 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 meet 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 all 45 employees of the venture capital firm to join Goldman.
