The ongoing shift from big, expensive military assets like battleships and fighter jets to smaller, more agile and less costly ones positions Anduril and other venture-backed companies to win more government and commercial contracts and draw more capital from investors.
Family offices are key venture-stage investors in defense-related technology as other LPs explore their options.
Venture capital opportunities in defense technology are proliferating but they pose challenges, says Mercer’s Garvan McCarthy.
The sovereign wealth fund committed to new funds managed by 8VC, DCVC, J2 Ventures, Lightspeed Venture Partners, Lowercarbon Capital, Menlo Ventures and TCG Crossover Management.
CVs are gaining momentum in the VC industry as more venture firms use them to extend ownership of prized assets and generate liquidity for LPs.
'One of the things we’ve changed over the past couple years is we’re getting exposure to earlier rounds,' said UNF CIO Brian Neale.
New legislation that sets clearer rules for the sector is helping drive increased investment and adoption by mainstream financial institutions.
’We’ve discovered through our research [that] if you have decision-makers that are diverse, then the capital will go to more diverse founders,’ says Christine Hockley of British Business Bank.
The pension is unloading older holdings in primarily large buyout funds and buying into funds focused more on mid-market, higher growth and even venture capital.
Venture/growth represented about 8% of GP-led volume in the first half, which matched the full-year volume of last year, according to Jefferies' recent volume report.