Andreessen Horowitz Eyes Private Equity With New Fund Launch: Report

Andreessen Horowitz, the renowned venture capital firm, is reportedly gearing up to launch its first private equity fund, as per documents.

What Happened: The firm’s new private equity fund, named a16z Perennial Private Equity Fund, will be focused on the private equity asset class, as per the filings with the Securities and Exchange Commission in March.

However, the documents reviewed by Fortune do not disclose further details or a launch date. It remains unclear whether the fund will invest directly in companies or third-party private equity funds.

Andreessen Horowitz, also known as a16z, has been primarily known for its success in early-stage venture capital. The firm’s co-founders, Marc Andreessen, and Ben Horowitz, initially made their wealth as internet pioneers and later as investors.

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The firm has been expanding its focus, recently launching a public investing strategy and recruiting academics and researchers to influence tech and finance industry policy.

Andreessen Horowitz did not immediately respond to Benzinga's request for comment.

Why It Matters: The new private equity fund is operated by a16z’s wealth management arm, Perennial, which was established in 2022 to manage the personal wealth and philanthropy of the families of entrepreneurs and investors the firm has built relationships with.

The fund may cater to these customers, given its name. It is unusual for firms to run both a family office and a VC firm concurrently, although Iconiq Capital has operated in this manner for a decade.

This move into private equity comes on the heels of Andreessen Horowitz’s plans to raise $6.9 billion for various funds, including AI, gaming, and “American Dynamism” initiatives.

Earlier in April, Andreessen Horowitz’s co-founder Andreessen made headlines for his critical comments about internal issues at Alphabet Inc.’s Google and its potential impact on AI safety.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote