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.
Contacts
Brittany K. Hargest
Greenspring Associates
O 410
363 2725
M 443 783 5865
[email protected]
greenspringassociates.com
