Altos Ventures works with Greenspring to revamp 2008 fund

Altos Ventures raised more than $400 million in a restructuring of its 2008 fund that gave investors in the pool the option to cash out, according to several secondaries sources and a Form D filing.

Greenspring Associates was a buyer on the deal, three sources said. Whether Greenspring was sole investor or part of an investor group is unclear.

Altos worked with Lazard on the secondary process, which moved assets out of its 2008 fund into a continuation vehicle.

Altos, formed in 1996, raised about $85 million for Fund IV. The firm’s principal owners are Han Kim, Hodong Nam and Anthony Lee, according to Altos’s Form ADV.

That process enabled LPs to cash out of their stakes in the fund or roll their interests into the new fund that gave the GP more time to manage the investments. It’s not clear how many investors chose to sell vs. roll.

Altos’s Form D for its Fund IV liquidity fund, filed April 29, said it raised about $434.6 million from 37 investors. Altos also said in a separate Form D of the same date that it raised about $22.8 million for a Fund IV reserve fund.

Altos Fund IV was generating a 31.7 percent net internal rate of return and a 8.5x multiple as of June 30, 2018, California Public Employees’ Retirement System performance data shows.

In other words, CalPERS committed $9.9 million to the fund and has received about $10.5 million in distributions, with about $84.2 million of cash out and remaining value, CalPERS information shows.

Action Item: Check out Altos’s Form ADV here: https://bit.ly/2ERQD0V