Pinegrove Opportunity Partners has raised $2.2bn for a new venture secondaries fund, adding momentum to a fast-growing segment of private markets driven by prolonged startup illiquidity.

The San Francisco-based firm, founded in 2023, focuses on buying existing stakes in venture-backed companies or funds rather than leading primary investment rounds. It has already deployed $1bn of the fund, including secondary positions in Stripe, Databricks, and Revolut.

Brookfield Asset Management and Sequoia Heritage anchored the vehicle with a combined $500m commitment. Other limited partners include the Florida State Board of Administration, according to people familiar with the matter.

Pinegrove plans to deploy most of the capital directly into mid- to late-stage private technology companies that are approaching profitability. The remaining capital will be invested in funds or other vehicles. Typical investments will range from $50m to $250m.

“Over the past decade, the landscape for venture capital and growth investing has undergone a structural shift. Companies are staying private longer, which creates significant capital needs as stakeholders seek liquidity options to de-risk and diversify their portfolios,” said managing partner and chief investment officer Brian Laibow in a statement. 

The fund’s leadership team includes Laibow, formerly of Oaktree Capital Management’s Global Opportunities Fund, alongside partners with backgrounds at D1 Capital Partners and Goldman Sachs.

The raise comes as the venture secondaries market expands rapidly alongside private equity secondaries, with large asset managers and banks launching new strategies to provide liquidity as IPO activity remains subdued.

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