Adams Street Partners, LLC, a prominent private markets investment firm managing over $62 billion in assets, today announced the successful final close of its inaugural dedicated European Venture Fund. The fund proved to be significantly oversubscribed, securing capital commitments exceeding €270 million. This strong investor demand underscores confidence in the vibrant venture ecosystem currently thriving across Europe, particularly within the next-generation technology and healthcare sectors, which the new fund is poised to support.
Strategy and Investment Focus
While this marks Adams Street’s first dedicated fund specifically focused on European venture capital, the firm is by no means new to the region. Adams Street has maintained a significant presence in European venture capital since 2000, having invested nearly $2 billion in over 70 European venture capital funds. These include commitments to well-known names such as Accel, Index Ventures, and Balderton Capital, demonstrating a long history of backing key players in the European market.
The strategy for the new European Venture Fund is designed to capitalize on this established foundation and the firm’s global investment capabilities. The fund will primarily target exposure to the region’s most innovative companies through disciplined primary commitments to between 10 and 20 new venture capital funds. In addition to these core fund investments, the strategy wisely reserves up to 30 percent of the committed capital for secondary transactions and direct co-investments into promising startups. This hybrid approach aims to build a diversified portfolio encompassing approximately 400 early-stage companies over the next two to three years, with a clear focus on companies developing cutting-edge technology and healthcare solutions.
Building on a Track Record
The successful close of this European fund is a significant milestone that builds directly on Adams Street’s impressive 25-year track record of venture investing in the region and further solidifies the strength of its global venture capital franchise. It follows closely on the heels of another successful fund closing last year—the firm’s oversubscribed Venture Innovation Fund IV Program, which secured $1.2 billion in capital commitments.
A key backer of the new European fund is British Business Investments, a subsidiary of the British Business Bank, which has committed up to €60 million. This commitment is specifically aimed at supporting innovative businesses across both the UK and wider Europe, working to improve access to long-term patient capital for ambitious, high-growth companies crucial for economic development.
Global Reach, Selective Approach
The firm maintains a commitment to being a global leader in private markets, underpinned by a reputation for strong performance, unwavering integrity, and a trusted partnership approach with its institutional clients. Adams Street also places a strong emphasis on diversity, equity, and inclusion, recognizing that varied perspectives are essential to enhancing both its business operations and its investment outcomes.
Known for its innovative fund-of-funds strategies, Adams Street maintains a significant global footprint with 13 offices and investments spanning over 30 countries, supported by a robust track record of protecting client capital. Its employee ownership structure, combined with a dedication to responsible investing and community engagement, further distinguishes the firm within the competitive private markets industry.
The successful closure of Adams Street’s €270 million European Venture Fund serves as a strong testament to the firm’s confidence in Europe’s significant innovation potential. It also highlights Adams Street’s proven capability to effectively connect institutional capital with the next wave of technology and healthcare leaders emerging from the continent. With its distinctive employee-owned structure, robust global platform, and established track record built on principles of responsible investing, Adams Street is well-positioned to play a significant role in shaping the future of private markets, both within Europe and on a global scale.
