Vintage raises $920M and will back fewer VC funds as venture money concentrates and secondaries boom

What's the deal? Vintage Investment Partners, the Israeli-founded venture fund-of-funds and secondaries investor, has raised $920 million in new capital, lifting its assets under management above $4.8 billion. Founded in 2003, Vintage backs venture funds, buys existing stakes in funds and private companies, and co-invests alongside VCs in their portfolio companies.

Fewer managers, more secondaries: According to the Wall Street Journal, Vintage plans to back fewer venture managers with the new money and keep more room for secondary deals, buying stakes from investors and employees who want liquidity.

"More value is being created in private markets, over shorter timelines, than at any point in the history of venture," said co-managing partner Asaf Horesh. He argued that successful founders keep going back to a small group of sought-after firms, so access to those managers is what counts.

The bigger picture: Companies are staying private for longer and creating most of their value before they list. That leaves LPs, early investors and employees waiting years for exits, and it has made secondaries one of the fastest-growing corners of venture. The money is also concentrating: LPs are writing bigger cheques to fewer, established managers, and fund-of-funds like Vintage are now saying the quiet part out loud by trimming their own manager lists.

People: Brachie Sprung joined as chief investor relations officer, and Tzlil Kovetz and Ilan Leiferman, who leads Vintage's Value+ platform, were promoted to partner.

What could go wrong? Vintage is small next to the specialist secondaries giants raising multi-billion-dollar funds for the same liquidity squeeze, and backing fewer managers means more concentrated bets.

Sources: Vintage, Calcalist / Ctech, The Wall Street Journal

Photo: Asaf Horesh and Abe Finkelstein, co-managing partners of Vintage Investment Partners (Omer Hacohen / Calcalist)