Jay Z's venture capital firm, Marcy Venture Partners, has merged with Pendulum Opportunities, the investment arm of Pendulum Holding, to form MarcyPen Capital Partners, a new entity with a substantial $900 million in assets under management, according to Pitchbook.

The merger, which was finalized around September, brings together two prominent Black-owned investment firms, further solidifying their presence in the venture capital landscape. While a MarcyPen spokesperson declined to comment further on the matter, records filed with the California Secretary of State and private equity-industry database Prequin confirm the deal.

MarcyPen Capital Partners is already making strides, with Pendulum Opportunities' previous plans to raise a $250 million Fund II now continuing under the new entity's name, MarcyPen Opportunities Fund II. According to an SEC filing, the fund has already secured over $100 million in commitments.

Marcy Venture Partners was founded in 2018 by Jay Z, Jay Brown, and Larry Marcus. Brown is a co-founder of RocNation, while Marcus previously co-founded Walden VC, which invested in notable companies like Pandora Radio and TodayTix. Under their leadership, Marcy Venture Partners backed several companies, including Partake Foods, web3 company Spatial Labs, and Rihanna's lingerie line Savage x Fenty.

Pendulum, founded in 2019 by Robbie Robinson, an advisor to the Obama family, and his wife D'Rita, has also invested in various companies, such as Greenwood Bank and hair brand Adwoa Beauty, according to Pitchbook. The merger brings together the expertise and networks of both firms, positioning MarcyPen Capital Partners as a significant player in the venture capital space.

The formation of MarcyPen Capital Partners is a significant development in the venture capital industry, particularly in the context of increasing efforts to promote diversity and inclusion in the sector. The merger is likely to have a positive impact on the startup ecosystem, providing more opportunities for underrepresented founders and entrepreneurs to access capital and resources.

As MarcyPen Capital Partners moves forward, it will be interesting to see how the new entity leverages its combined assets and expertise to drive growth and innovation in the industries it invests in. With its substantial assets under management and the reputation of its founding partners, MarcyPen Capital Partners is well-positioned to make a meaningful impact in the venture capital landscape.