Dragoneer raised $1B for continuation fund, half its $2B target

What's the deal? Dragoneer Investment Group collected $1 billion for a new continuation fund, half its $2 billion target, according to people familiar with the matter. The San Francisco firm dangled prized stakes in OpenAI and SpaceXDealroom has a profile for this one. Try Dealroom → to draw investors, and was also willing to add holdings in Databricks and wealth-management firm Creative PlanningDealroom has a profile for this one. Try Dealroom → to sweeten the deal.

Why now? Continuation funds have taken off across the industry as a way to return cash to investors at a time when private equity and venture funds have struggled to profitably sell portfolio companies.

What's the endgame? Behind the deal is Dragoneer's desire to hold onto Amwins GroupDealroom has a profile for this one. Try Dealroom →, a wholesale distributor of specialty insurance, and to include PointClickCare, a health-technology company. The transaction helps the firm hit a target public-to-private ratio of 2-to-1 for the hybrid fund, which holds roughly $15 billion of assets.

By the numbers: The deal carried discounts of roughly 5% to 20%, with some companies valued at no discount, one person said. On average, venture and growth secondaries traded at 65% to 70% of net asset value in the first half of the year, per PJT PartnersDealroom has a profile for this one. Try Dealroom →.

The signal: Dragoneer's willingness to part with stakes in OpenAI and Databricks reflects rising demand for hot AI assets among buyers without prior access. Lightspeed Venture Partners is pursuing a similar deal around OpenAI and AnthropicDealroom has a profile for this one. Try Dealroom →. "Given the recent SpaceX IPO and upcoming Anthropic listing, buyers have begun to reorient their secondaries portfolios towards companies with liquidity events in 2027 and 2028," PJT Partners said.

Read more: ca.finance.yahoo.com

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