Israeli technology investment firm Vintage Investment Partners has raised $631 million to finance venture capitalists, giving it additional capital to back top managers at a time when the broader private technology market is slowing down.
(Bloomberg) — Israeli technology investment firm Vintage Investment Partners has raised $631 million to finance venture capitalists, giving it additional capital to back top managers at a time when the broader private technology market is slowing down.
The Herzliya-based firm closed its seventh fund-of-funds, bringing its assets under management to more than $3.6 billion, according to a statement Monday. Vintage is an investor in venture capital funds, including those of Andreessen Horowitz, Accel and General Catalyst, and has also directly funded startups such as Sweden’s Klarna Bank AB.
The new fund comes amid signs that money for startups is drying up due to rising interest rates and plunging valuations for public technology companies. Global venture funding slumped by a third quarter-on-quarter to $74.5 billion in the past three months, according to CB Insights.
Vintage previously raised $500 million in 2021 for its last fund-of-funds. Part of the new vehicle will be dedicated to investing in health-tech money managers, following dramatic changes in that sector caused by the pandemic, General Partner Abe Finkelstein said in an interview.
“In our view, the next two, three, four years will be a fantastic time to be investing in venture because prices are going to come down,” Finkelstein said. He added that Vintage took advantage of rising valuations in recent years to sell out of some holdings and return cash to its limited partners.
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The firm had exposure into startups that held initial public offerings or were acquired in recent years such as Monday.com Ltd., UiPath Inc., Roblox Corp., JFrog Ltd. and Wolt Enterprises Oy, Finkelstein said.
Founded in 2002, Vintage’s newest fund-of-funds will back VC firms and early-stage investors in the US, Europe and Canada. It also includes an Israel-dedicated fund and one that focuses on health tech, according to the statement.
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