Dragoneer raises $1 billion for continuation fund with OpenAI stake

Dragoneer Investment Group raised $1 billion for a continuation fund after seeking $2 billion for a vehicle that could include stakes in OpenAI, SpaceX, Databricks, and Creative Planning, people familiar with the matter told Bloomberg.

The final mix of holdings in the fund was not clear. Dragoneer was also seeking to retain interests in Amwins Group and health-technology company PointClickCare, the people said.

Continuation funds let private equity and venture firms hold selected assets longer while generating liquidity for existing investors. They have become more common as managers struggle to sell portfolio companies at attractive valuations.

The transaction will help Dragoneer move toward its target public-to-private ratio of two to one in its roughly $15 billion hybrid fund, according to the people.

The deal carried discounts of about 5% to 20%, with some companies valued without a discount. PJT Partners said venture and growth secondaries traded at an average of 65% to 70% of net asset value in the first half of the year.