G Squared's New $2.3B War Chest Targets Pre-IPO Secondary Shares

G Squared just closed its biggest fund ever.

$2.3B to chase stakes in pre-IPO secondaries.

G Squared VII closed at $2.3 billion, its largest flagship fund, roughly double the last one.

But this is not a pure private-equity secondaries fund.

G Squared focuses on growth-stage technology companies and can invest through:

- Direct secondary purchases
- Company-led tender offers
- Structured investments
- Selective primary financings

In a secondary transaction, G Squared buys shares from existing shareholders that want liquidity before an IPO or acquisition.

A previous example was G Squared’s purchase of approximately 4.5 million Anthropic shares for $135 million from the FTX bankruptcy estate in 2024.

The firm has also disclosed positions in companies including Polymarket, Mercor, and Nscale.

Its focus is on growth-stage companies that have already demonstrated significant traction, but may still be years away from a public listing or exit.

The firm has raised the capital.
But it is not necessarily rushing to deploy all of it.

Founder Larry Aschebrook has described AI valuations as potentially overheated and is holding 'dry powder' for a possible correction in 2027.

Secondary purchases offer employees, founders, early investors and venture funds liquidity.

And in return, secondary buyers gain access to private companies before a potential IPO.

Is the secondary market the best way to invest in AI?