Goldman Sachs just bought secondaries OG Industry Ventures for what could be about $1 billion, once all is said and done. The headlines all focus on “secondaries”. But here’s what they’re missing:
By Top Tier Capital Partners’ count — another firm that knows a thing or a million about secondaries – there are 7 different (but overlapping in many cases) strategies—each with its own economics, risk profile, and competitive dynamics. Here’s what’s actually happening…
1. Direct Secondary Sales — Buying VC-backed equity shares directly from shareholders.
You’re stepping into someone else’s position in a specific company—usually late-stage startups where employees or early investors want liquidity. (I’ve been a seller a couple of times personally in this way, specifically selling common stock to existing investors. What did I learn? The house always wins!)
2. Company Liquidity Programs — Structured buyback programs where the company itself facilitates employee share sales.
Think high-flier late-stage companies like Stripe, Clay, and Mercury running a tender offer so employees can cash out without waiting for an IPO or acquisition. (I’ve been involved in one of these on the investor side, working with Jay Clouse and Creator Science Syndicate when we purchased and syndicated part of Kit’s tender last year.)
3. Preferred + Common Bundled Deals — Providing employee secondary liquidity alongside a preferred equity investment.
The company raises new capital while giving early team members a chance to sell.
4. Individual LP Interest Sales — Buying a single LP’s stake in one venture fund.
You’re acquiring their remaining capital commitments and their share of future distributions from that specific fund.
5. LP Portfolio Purchases — Buying a basket of LP interests across multiple funds.
Instead of cherry-picking one position, you’re acquiring a diversified portfolio—often at a discount when LPs need liquidity quickly.
6. GP-Led Restructurings — When a fund’s life is ending but portfolio companies haven’t exited, the GP creates a continuation vehicle.
Existing LPs can cash out or roll into the new fund. New investors get exposure to mature portfolio companies.
7. Full Fund Liquidations – Nuff said. 🙂
So what did Goldman actually buy when they acquired Industry Ventures?
A lot more than the headline “secondaries” would let on …
