Venture capital

Unlike more traditional continuation fund deals, no assets or fund stakes are being rolled into a new vehicle in this deal.

There is heightened interest in continuation funds within the venture space, yet these vehicles may not be best suited to most managers.

Rolling investors into the new fund include Partners Group, HighVista Strategies, Committed Advisors and Hollyport Capital, according to a statement.

NewView spun out of Silicon Valley venture giant NEA in 2018 through a deal backed by Goldman Sachs and Hamilton Lane.

CVs are gaining momentum in the VC industry as more venture firms use them to extend ownership of prized assets and generate liquidity for LPs.

Venture/growth represented about 8% of GP-led volume in the first half, which matched the full-year volume of last year, according to Jefferies’ recent volume report.

The secondaries pioneer is approaching its target for the vehicle, which marks its first strategy beyond VCFA’s flagship Venture Partners series.

Former Intel Capital directors closed on $305m for their third flagship fund, which will aim for exposure to data infrastructure, cybersecurity, fintech, robotics and next-gen gaming companies.

While secondaries are set to be transformational for the venture capital industry, managers in the market face a steep learning curve.

Venture capital firms are motivated to find ways to return capital to their LPs. Beyond continuation funds, these managers are running strip sales, preferred equity deals and tender offer processes to generate liquidity.