US Secondaries Fund III A/S

About US Secondaries Fund III A/S*

In cooperation with Knightsbridge Advisors we have now launched a new secondaries fund, US Secondaries Fund III A/S, which over the next few years will buy up “secondary” venture investments, i.e. already made venture investments, at a discount compared to the most recently achieved valuation.

Timing is important, and we consider the investment period of the next 3 years to be favorable due to the current market squeeze.

The results are, according to Cambridge Associates for venture funds (FOF), in the best quartile (“1st Quartile”). This is a result of long-lasting relationships, built over several decades, providing an opportunity to access the world’s best, primarily Silicon Valley-based, venture funds that are usually “By Invitation Only”.

Like the previous secondaries funds, the investments will be handpicked from a shortlist, primarily generated from more than 5,000 active companies in which the primary investments have been made. These are funds that are considered particularly attractive and will be bought when shares come on sale at a discount. In other words, there is both a tough selection process and a good risk diversification.

We would particularly like to highlight the following:

  • Positive liquidity and exit horizon: Expected positive liquidity from year 6 and exit after 8-10 years, compared to usually 10-15 years in primary venture funds.
  • Tax efficient: Investment company (“ABL §19”) suitable both for company, “VSO”, “PAL” and private funds.
  • No subscription fees and reasonable annual costs: No subscription fees, annual administration fee of approx. 1.5% plus costs and a carry of 10% above a hurdle rate of 8% and then 15% above a hurdle rate of 20%.

Next step: We are ready to send you all the documentation and are happy to hold a non-binding meeting to discuss the investment case, investment requirements etc.

You are welcome to contact Christian Stig Møller and Søren Truelsen for further information.

*For Danish investors only