Greenspring leads Israeli continuation fund transaction
Greenspring Associates, has successfully completed a continuation fund transaction for Giza V, a 2008 vintage venture-capital fund, managed by Giza Venture Capital (Giza).
The continuation fund, with around USD100 million in commitments, provides Giza with the opportunity to increase the value of the portfolio companies by providing additional time and capital for growth. The portfolio companies were transferred into the continuation fund with limited partners in Giza V having the option to cash-out or to roll-over into the continuation fund.
“As global venture investors in fund, direct and secondary opportunities, we have seen increasing volume in GP-led restructurings, both on the part of Limited Partners and General Partners seeking liquidity solutions,” says Hunter Somerville, General Partner at Greenspring Associates. “These transactions can be hard to diligence, due to the nature of the underlying holdings and limited information flow. However, as active investors in the Israeli ecosystem and direct investors in several of the fund’s portfolio companies, we were excited about the opportunity to add to our existing positions. We are thrilled that Giza selected us as their low-friction partner of choice to generate liquidity for their Limited Partners.”
Asante Capital Group LLP acted as the exclusive financial advisor on the transaction. “We are pleased to have advised on one of the first continuation fund transactions in the Israeli venture capital industry,” says Yaron Zafir, Senior Advisor, Asante Capital. “This demonstrates the ability to apply this creative solution, allowing General Partners to manage investment portfolios beyond a fund’s end of life, to new geographies and asset classes.”
Goodwin Procter LLP and Gross & Co. (GKH) served as legal counsels to Giza on the transaction.