Goldman Sachs Group Inc. agreed to buy venture capital investor Industry Ventures in a deal that expands the Wall Street bank’s reach into the world of American entrepreneurs.
Goldman will pay as much as $965 million — starting with $665 million in cash and equity when the transaction is completed, plus up to $300 million, also in cash and equity, based on Industry Ventures’ performance through 2030, according to a statement Monday.
That “consistency of his returns” was key to Goldman’s interest, said Marc Nachmann, the bank’s head of asset and wealth management. “It’s not easy to do over a 20-year period.”
The companies started discussing a deal several months ago, and their agreement will help Goldman get closer to potential clients for its banking and wealth-management arms, Nachmann said. Shares of the lender are up 37% this year. It’s set to report third-quarter results on Tuesday.
While the additional assets are relatively small for Goldman’s size, venture capital investing is a key growth area within the US economy as companies increasingly remain private, with many fueled by booms in artificial intelligence and infrastructure. The deal is expected to close in the first quarter.
