Atomico, the prominent European venture capital firm, is set to sell part of its fund-of-funds portfolio, according to multiple sources. The buyer, US private equity firm Kline Hill Partners (KHP), is acquiring Atomico’s limited partner (LP) stakes in several high-profile venture capital funds, including Seedcamp, Visionaries Club, Puzzle Ventures, Common Magic, and Tiny VC.
Sources close to the deal note that the VC fund managers involved must still approve KHP’s acquisition of Atomico’s LP stakes. Some funds may explore alternative buyers, including existing LPs, before finalizing the transaction.
Atomico, which primarily invests in startups at Series A and later stages, has been active in funding early-stage venture capital (VC) firms since 2017. Notably, the firm’s portfolio includes funds backed in 2022 and 2023. In 2023, Anu Adebajo joined Atomico from British Patient Capital to head its fund-of-funds strategy but departed the following year.
Aside from these funds, Atomico is also an LP in several other early-stage, diverse founder-focused investors, including Ada Ventures, Cornerstone VC, Unconventional Ventures, and Pale Blue Dot, a climate tech VC. It also holds stakes in seed funds like Firstminute Capital, according to PitchBook.
The firm has been evolving rapidly, diversifying its investments across various VC sectors. In 2024, Atomico launched two new funds, totaling $1.24 billion, focused on backing European startups. These funds consist of a $485 million early-stage fund and a $754 million growth fund, targeting Series B to pre-IPO companies.
Industry Changes at Atomico
Atomico is not alone in pursuing a fund-of-funds strategy. Molten Ventures, another publicly listed VC firm, is known for backing both startups and seed VC funds, some of which, like Zinc and Seedcamp, are also backed by Atomico. UK-based Isomer Capital also follows a similar fund-of-funds approach, co-investing with the VCs in its portfolio.
Since closing its fifth fund, worth $820 million, in 2020, Atomico has seen significant changes within its partnership. The firm has lost six investment partners but gained seven in the same period. Irina Haivas, one of the recent departures in April 2024, was involved in investments into Neko Health, Kheiron Medical, and Healx, among others.
