Andreessen Horowitz, the storied enterprise agency identified for being an early investor in a few of the largest tech firms together with Airbnb, Coinbase and GitHub, has created a brand new fund to proceed rising its enterprise regardless of the slowdown in conventional VC funding.
The evergreen fund is titled a16z Perennial Enterprise Capital Fund, in accordance with a submitting made with the Securities and Trade Fee final week. The submitting reveals that the fund will function from Andreessen Horowitz’s Menlo Park workplace.
Moreover, the enterprise agency has registered its Perennial Administration enterprise with the U.S. regulator. It has been listed as a “giant advisory agency” with a regulatory AUM of $105 million, per an ADV submitting with the SEC.
The enterprise unit has been registered with 18 high-net-worth people as its shoppers. It’ll supply advisory providers equivalent to portfolio administration for people, small companies and pooled funding automobiles in addition to personal fund managers, wealth administration advisers and monetary planners, the submitting reveals.
Andreessen Horowitz has eight staff in its new unit, together with chief funding officer Michel Del Buono, who was employed final yr, per the submitting.
An Andreessen Horowitz spokesperson didn’t reply to a request for touch upon the event.
In August final yr, Bloomberg reported on Del Buono’s hiring and Andreessen Horowitz’s plans to start out wealth-management providers. The information company mentioned the agency was seeking to handle the wealth of its companions and the executives of its portfolio firms.
General, the plan appears to let the enterprise agency preserve managing its shares in publicly traded firms as a substitute of distributing them to LPs, much like what Sequoia Capital did with its evergreen fund in 2021. The timing for Andreessen Horowitz could possibly be notably promising, given the general public market is experiencing a major decline attributable to macroeconomic components and that the worth of public shares has decreased as a result of financial turmoil, giving them extra upside potential.
Like different VC companies worldwide, Andreessen Horowitz just isn’t seeing important progress from its startup investments due to the general market slowdown. Just like a choose pool of different fund managers, Andreessen Horowitz lately began brazenly courting capital from Saudi Arabia as U.S. firms are scuffling with tighter lending and better inflation. The agency additionally began making a fund-of-funds to put money into smaller VC funds to broaden its already expansive community and ostensibly get a take a look at extra of essentially the most promising early-stage firms forward of a few of its rivals.
