Turbine Finance Unlocks Venture LP Liquidity Beyond Secondaries: Revolutionizing Private Market Access

In the post-2022 venture capital downturn, Turbine Finance emerged as a innovative solution to provide limited partners with liquidity options superior to traditional secondaries.

Co-founded by Mike Hurst of TTV Capital, along with Peter Andes, Rob Freelen, and Kaare Wagner, Turbine offers margin-style lending against venture fund positions, enabling investors to access capital without selling stakes.

Navigating Liquidity Challenges in Venture Capital

The denominator effect amplified venture's weight in LP portfolios amid public market declines, trapping capital in illiquid private investments.

Traditional secondaries demand heavy discounts of 30-60%, loss of future upside, legal hurdles, and GP approvals, making them unappealing for long-term holders.

Turbine's model mitigates these issues by providing non-dilutive debt with low loan-to-value ratios to family offices and similar sophisticated LPs.

Securing a $100 million warehouse credit line from Silicon Valley Bank, Turbine publicly launched in April 2025 after a seed round in early 2023.

Impact and Historical Context

Historically, banks shunned lending against venture positions due to valuation complexities and lack of cash flow in early-stage portfolios.

Turbine partners with VCs to underwrite and value funds, placing debt with banks, insurers, and asset managers for efficient liquidity.

Having underwritten about 60 funds with over 160 firms in pipeline representing more than $500 billion in AUM, Turbine is scaling rapidly.

Future Outlook Amid Prolonged Private Stays

As companies remain private longer—with median IPO age rising to 13 years—Turbine's credit solutions enable LPs to recycle capital across vintages without over-allocating.

This approach preserves full upside potential, secures LP seats in future funds, and bridges gaps until delayed exits like potential SpaceX IPOs materialize.