Goldman Sachs Group, Inc. (GS.US) invests up to 965 million US dollars to acquire the VC company Industry Ventures, making a major entry into the American venture capital sector, accounting for 20% of its business.

On Monday, Goldman Sachs Group, Inc. (GS.US) agreed to acquire venture capital firm Industry Ventures, a move that will allow the Wall Street bank to expand its business scope and delve deeper into the realm of American entrepreneurs. According to a statement released on Monday, Goldman Sachs Group, Inc. will pay up to $965 million - initially paying $665 million in cash and stock upon completion of the transaction, and up to an additional $300 million based on Industry Ventures' performance by 2030, also to be paid in cash and stock. Founded in 2000, the San Francisco-based investment firm currently manages around $7 billion in assets, mainly through investments in the secondary market, co-investments, and providing seed capital to external venture capital funds. The company has been collaborating with Goldman Sachs Group, Inc. for about twenty years, while Goldman Sachs Group, Inc. currently manages around $3.3 trillion in assets. Industry Ventures founder Hans Swildens and two senior colleagues will join Goldman Sachs Group, Inc. as partners. Swildens will report to Michael Brandmeyer, head of the external investments division at Goldman Sachs Group, Inc. In an interview, Swildens stated that through approximately 10,000 underlying investment companies and over 325 companies they partner with, Industry Ventures covers about one-fifth of the venture capital business in the United States. Since its founding, his company has provided investors with a 2.2 times capital return. Marc Nachmann, head of asset and wealth management at Goldman Sachs Group, Inc., stated, "The consistency of his investment returns is a key factor of interest to Goldman Sachs Group, Inc. Sustaining this performance over a 20-year period is no easy feat." The two companies began discussing a transaction several months ago, with Nachmann stating that their agreement will help Goldman Sachs Group, Inc. better promote its banking and wealth management business to potential clients. The stock has already risen 37% this year. The bank will release its third-quarter results on Tuesday. While these additional assets may not be large in terms of Goldman Sachs Group, Inc.'s scale, venture capital is a key growth area in the U.S. economy as more and more companies remain private, many of which benefit from the prosperity of artificial intelligence and infrastructure development. The transaction is expected to be completed in the first quarter.