We are providing our investors and the managers in whom we invest with benefits accruing from over 65 combined years’ involvement in the venture capital industry –Access, Experience and Acumen. Our unique investment structures defy the traditional fund-of-funds model, allowing our institutional investors greater collaboration and control of portfolio construction – all done at historically low fee rates that reflect a variable cost infrastructure developed with 21st Century technologies.
Creative, Thoughtful and Bespoke Access to High-Performing Venture Capital Funds
Sophisticated institutions are interested in a more customized and targeted approach to venture fund investing. We believe that close collaboration with our investors is important to achieving desired returns and portfolio objectives. We listen to each investor and thoughtfully select investments that achieve their goals.
We work with a small number of large institutional investors and provide them meaningful access to superior performing, best in class venture capital funds. We offer semi-discretionary, separate account fund management, where investors maintain a degree of control of commitment decisions to ensure each investment fits within their larger portfolio. Our extensive experience includes working within the policy and reporting requirements of a variety of investors, including public pension plans. And we believe that alignment of interest with our investors is a necessary requirement. We are in the business for the promise of outsized returns from exceptional investments, not the hope of rich fees from increasing assets under management.
Solving for Problems in the Traditional Fund-of-Funds Model
We service just a few large institutional investors very well, and maintain a focus on our highest-performing venture relationships.
The venture capital fund investing business is not very scalable. Firms that raise large blind pools and maintain broad venture firm relationships invariably are forced to back median performers.
Our bespoke portfolio development model incorporates the best aspects of traditional fund-of-funds with customized, collaborative venture investment selection.
“Blind pool” venture funds-of-funds still work well in specific instances, but they generally have become less desirable in a maturing investor landscape. Given the lack of control and visibility of investments and pacing, it’s difficult to know how they fit within an investor’s larger portfolio. Our approach to portfolio development includes active collaboration with our investors to ensure each investment fits well in the context of their broader portfolio objectives.
We charge very competitive fees without sacrificing the quality of investments.
The traditional fund-of-funds fee drag can be significant, as fees are usually charged on committed capital from the outset. Our fee schedules are designed to minimize the J-curve effect of fees and more directly match fees with commitments.
Our variable cost, out-sourced infrastructure model allows us to focus staffing on core competencies and leave fund administration and other functions to best-in-class expert service providers.
Legacy fund-of-funds organizations have high fixed-cost infrastructures that require them to continually “feed the beast”. We do not feel pressure to increase assets under management simply to maintain an existing cost base.