LIMITED PARTNERS ARTICLE SERIES
LIMITED PARTNERS ARTICLE SERIES – The surge of new venture capital in recent years is highly encouraging. Many established venture teams are launching new funds faster and with greater frequency. And they are often not waiting until completion of the commitment period of the previous fund to launch the next. This trend is reflective of the cycle of capital expansion and retraction that moves with the overall economy; however, this period of easily accessible capital appears to be nearing an end.
The recent access to capital has also attracted numerous new, first-time fund managers to the industry. As long-time Limited Partners (LP) investing in several funds, we track new fund managers for potential future participation to maintain a scan of the General Partner (GP) market to plan future capital allocations. While we have sidestepped many pitfalls to which some LPs can succumb, some of what we are writing about in this Series comes directly from learnings and errors made.
Read the posts below to learn more.
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LP Series: Our Views on Team
Venture capitalists are by their nature, builders and usually a mix of former entrepreneurs and transactional professionals who are optimistic about the future and ravenous for learning.
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LP Series: Our Views on the GP/LP Relationship
The GP/LP relationship is highly compelling and we felt, very worthy of discussion in the context of this article series. For both GPs and LPs, there is a lot of money, and just as notably time, at stake.
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LP Series: Our Views on LPACS & Reporting
As a fund of funds investor, we place significant importance on being able to meaningfully engage with the fund manager. Ideally, this means making a commitment adequate to occupy a seat at the Limited Partner Advisory Committee (LPAC) where possible.
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LP Series: Our Views on Exits & Extension Years
We get many pitch decks sent via email pitching the raise of venture capital funds. Most of them display impressive stats to entice the reader to lean in.
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LP Series: Our Views on Portfolio Management
As we consider our next potential venture fund investment one aspect of due diligence that we particularly enjoy is a study of the portfolios of a team’s current and past funds.
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LP Series: Our Views on Why We Do Not Invest In First-Time Funds
First-time fund managers are often comprised of active angel investors and/or successful entrepreneurs who contend that they will be able to expertly guide portfolio CEOs to maximizing on their opportunity.