Wall Street investment bank Goldman Sachs (GS) has announced that it is acquiring privately held venture capital firm Industry Ventures in a deal worth approximately $1 billion.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Goldman Sachs is paying $665 million in cash and equity, and up to $300 million more based on the firm’s future performance through 2030. The deal is expected to close in the first quarter of 2026. Industry Ventures is a venture capital firm with $7 billion in assets under management.
In a news release, Goldman Sachs said the purchase will boost its $540 billion alternative investment platform, which serves as an investment pipeline for the bank’s wealthy clients. San Francisco-based Industry Ventures has helped pioneer the U.S. venture capital market over the past 25 years.
Merging Operations
Industry Ventures says that it has made more than 1,000 investments and that it has generated an annual return of 18%. The venture capital firm adds that all 45 of its employees are expected to join Goldman Sachs once the acquisition is completed.
“Industry Ventures’ trusted relationships and venture capital expertise complement our existing investing franchises and expand opportunities for clients to access the fastest growing companies and sectors in the world,” said Goldman Sachs CEO David Solomon in a news release announcing the deal.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on six Buy and eight Hold recommendations issued in the last three months. The average GS price target of $794.70 implies 1.01% upside from current levels.
