(Bloomberg) -- Marcy Venture Partners, the firm co-founded by hip-hop star Shawn “Jay-Z” Carter, is in advanced talks to merge with the investment arm of Pendulum Holdings, according to people familiar with the matter.

A merger between the two California-based entities, which would have more than $1 billion in assets under management in a combination, is close to being finalized, the people said, asking not to be identified discussing confidential information. 

Representatives from Marcy Venture Partners and Pendulum declined to comment. 

Marcy Venture Partners was co-founded in 2018 by Jay-Z, 54, along with Jay Brown and Larry Marcus. Marcy is a nod to Brooklyn’s Marcy Projects — where Jay-Z grew up. It has invested in companies including a startup that makes vegan chicken nuggets, Merit Beauty, Our Place and Babylist. Jay-Z has separately backed Swedish oat-milk maker Oatly, as well as joining a funding round with Katy Perry and Serena Williams for Impossible Foods Inc. 

Describing itself as a “consumer & culture” investor, the San Francisco-based firm has also backed Rihanna’s lingerie line, a crypto-security firm, a phone-case maker and an electric-bike manufacturer, among others. 

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Pendulum was co-founded in 2019 by husband and wife Robbie and D’Rita Robinson, and has invested in companies including Chinese food brand Fly by Jing Inc., Founders Table Restaurant Group and co-working and warehouse provider Saltbox. Robbie Robinson began his career at Goldman Sachs and has worked as a financial adviser to Barack Obama. 

(Updates with combined assets under management in second paragraph.)

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