US SECONDARIES FUND III A/S
Investing in Secondaries
Nordic Bloom, in exclusive collaboration with Knightsbridge Advisors, registered as an investment adviser by the SEC, offers participation in the US Secondaries Fund III. This fund will primarily invest in previously subscribed capital shares in American venture-backed companies (“secondaries”), either directly or indirectly through the acquisition of shares in venture funds, etc., containing portfolios of such capital shares.
Lower Risk and Shorter Time Horizon
The fund selects secondaries investments from a shortlist primarily generated from the over 5,000 active companies that Knightsbridge has invested in and thus closely followed the development of through its “primary” funds. The companies in which investments are made are therefore well-known and have already demonstrated a track record, reducing the risk and exit horizon, as these companies are more “mature” compared to companies in primary funds. It is also customary for secondaries to be traded at a discount of 50-20% compared to the latest valuation, making the returns on this type of investment attractive.
Timing is crucial, and we consider the next 3 years to be favorable for investment due to the declining valuation of growth companies, partly influenced by higher interest rates, and more.
Attractive Liquidity, Exit Horizon, etc.
Expected positive net distributions from year 4 and an exit after 8-10 years, as opposed to the usual 10-15 years in primary venture funds. For more information on return objectives, please refer to our dedicated section.