Industry Ventures secondaries fund terms revealed

The San Francisco-based VC firm is in market with both a secondaries and a fund of funds vehicle.

Industry Ventures is seeking a 2x return multiple and a 20 percent internal rate of return (IRR) on its latest secondaries vehicle, Secondaries Investor reports.

Industry Ventures Secondary Fund VIII, which launched this year and is seeking $425 million, will invest 50 percent in direct secondaries, 25 percent in late secondaries limited partnership interests and 25 percent in special purpose vehicles, according to a presentation by the firm to the Dallas Police and Fire Pension System (DPFP) board meeting on 14 April.

Fund VIII has a 1.5 percent management fee and 17.5 percent carried interest, with a 6 percent preferred return or 15 percent carried interest with no preferred return.

Industry Ventures will itself commit 2 percent of the fund, though it was not clear if this was of the target or the hard-cap.

The firm’s fund of funds vehicle, Industry Ventures Partnership Holdings IV, is targeting a 2.5x to 3x multiple and a 20 to 25 percent IRR, according to the documents.

Fund IV, which launched in April 2015 and is seeking $200 million, has a 1 percent management fee and a 10 percent carried interest on its early secondaries and special purpose funds investments. It offers a 6 percent preferred return to limited partners and has a commitment period of four years, according to the presentation. About 40 percent of Fund IV will invest in early secondaries and special purpose funds, 40 percent in primary commitments, and 20 percent in direct co-investments.

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