Venture Unlocked: The playbook for venture capital managers

Evolving Venture Liquidity Solutions with Gaurav Mathur of Pinegrove Capital Partners

Jan 22, 2025

Gaurav Mathur, Partner at Pinegrove Capital Partners and former Goldman Sachs veteran, discusses the evolving landscape of venture capital. He addresses the increasing importance of liquidity solutions as companies remain private longer. Gaurav shares insights on continuation funds, strip sales, and the role of technology in enhancing transaction transparency. He highlights how these innovations align the interests of general and limited partners while adapting to the shifting dynamics of the venture market.

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INSIGHT

Venture Capital Liquidity Needs

Venture capital requires more robust liquidity solutions due to its growth and companies staying private longer.
This is analogous to private equity's growth, which led to a robust secondaries market and other financing options like private credit.

INSIGHT

Capital Called vs. Distributed Ratio

The ratio of capital called versus distributed is at an all-time high, impacting how GPs deliver returns to LPs.
There's a growing need for different liquidity mechanisms in venture capital.

INSIGHT

Future of Venture Capital Exits

Traditional exit mechanisms like IPOs and M&A are insufficient for the current venture capital market size.
Gaurav Mathur believes private markets will continue to grow, even with increased IPO activity.

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Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.

In this episode, I have the pleasure of conversing with Gaurav Mathur, Partner at Pinegrove Capital Partners. Together, we dive into the evolving venture capital landscape, focusing on liquidity solutions and the rise of secondary markets. Gaurav shares insights from his extensive experience, discussing the growth in assets under management, the trend of companies staying private longer, and the changing dynamics for limited partners. We explore mechanisms for generating liquidity, such as continuation funds, strip sales, and secondary tenders, emphasizing the importance of alignment between general partners and limited partners.

About Gaurav Mathur and Pinegrove:

Gaurav Mathur is a Partner at Pinegrove Capital Partners. Gaurav Mathur is a seasoned finance professional with extensive experience in investment banking and venture capital. In 2023, he co-founded Pinegrove with Brian Laibow through the backing of a $500 million commitment from Sequoia Heritage and Brookfield.

THE ORG

Prior to founding Pinegrove, Gaurav spent 18 years at Goldman Sachs as a Managing Director in the Investment Banking Division, leading the US Equity Private Markets. He began his career at PwC in the Dispute Analysis & Investigations Group. Gaurav holds a Bachelor of Science degree in Business/Commerce from the University of Virginia.Pinegrove Capital Partners is a venture investment platform that offers tailored solutions for fund managers, founders, and limited partners within the venture capital ecosystem. Their expertise includes fund of funds, venture debt funds, venture secondaries, and co-investments.

With combined assets under management exceeding $10 billion, Pinegrove is supported by sponsors such as Sequoia Heritage and Brookfield Asset Management. In May 2024, an affiliate of Pinegrove, backed by these sponsors, entered into a definitive agreement to acquire SVB Capital, the investment platform business of SVB Financial Group. This transaction was completed in September 2024.

Topics in this conversation include:

* Growth of AUM in Venture Capital (3:53)

* Data-Driven Insights on Liquidity (6:11)

* Private Markets Growth Forecast (11:03)

* Mechanisms for Generating Liquidity (17:00)

* Alignment in Continuation Structures (21:28)

* Sizing Continuation Funds (29:44)

* Exploring Strip Sales (31:36)

* NAV Lending as a Liquidity Tool (34:00)

* Growth of Liquidity Solutions (37:35)

* Technology's Role in Liquidity (41:14)

* Final Thoughts and Takeaways (45:55)

I’d love to know what you took away from this conversation with Gaurav Mathur. Follow me @samirkaji and give me your insights and questions with the hashtag #ventureunlocked.

If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on X.

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