Elizabeth "Beezer" Clarkson, Partner at Sapphire Partners, sits down with David Weisburd and Erik Torenberg to discuss how their new partnership with CalSTRS will allow them to expand their ability to support the next generation of VC managers – all while continuing to focus on investing in the established.
We’re proudly sponsored by Tactyc, visit tactyc.io if you’re ready to level up your venture fund.
The Limited Partner podcast is part of the Turpentine podcast network. Learn more: turpentine.co
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X / Twitter:
@Beezer232 (Beezer)
@dweisburd (David)
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LINKS:
Sapphire Partners: https://contact.sapphireventures.com/sapphire-partners
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SPONSOR: Tactyc
The Limited Partner Podcast is proudly sponsored by Tactyc.
Tactyc is the first forecasting and planning platform for venture capital funds. The platform is rapidly increasing efficiency and data-driven workflows and already works with over 300 funds.
It's time that managers build and maintain dynamic portfolio models to guide data-driven decisions without being burdened by spreadsheets. The solution enables portfolio construction in minutes and enables managers to share their construction plans with potential LP investors.
Tactyc also enables managers to analyze probabilistic scenario outcomes on their portfolio companies and advanced reserve optimization techniques.
Check them out at tactyc.io
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Questions or topics you want us to discuss on The Limited Partner podcast? Email us at david@10xcapital.com
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TIMESTAMPS
(00:00) Episode Preview
(00:57) The Importance of LP Voices and Sapphire’s Partnership with CalSTRS
(02:15) Why Investing in Emerging Managers Have Such a Unique Dynamic
(04:09) The Role Emerging Managers Play in the Construction of a Compelling Portfolio
(06:16) Thousands of Emerging Managers vs Forty Established Funds
(07:30) Does Excess Capacity Translate to Adverse Selection?
(08:17) “LPs are like Snowflakes and They’re all Different.”
(10:49) Common Reasons Why LPs Don’t Re-up
(13:48) What Makes for a Great Manager?
(16:27) Episode Sponsor: Tactyc
(17:34) What Sapphire Looks for When Evaluating a New Manager
(19:00) Who Wins: Generalist v. Specialist
(21:57) Will Solo GPs be able to Survive in this Market?
(24:38) Beezer’s Predictions on Spinouts
(26:34) The Bias and Rationale Behind Institutional LPs Desire to Re-up in Existing Managers
(28:14) The New CalSTRS Program’s Investment Rubric on Checksize, Fund Size, Return Profile and Audit Requirements
(30:37) How LPs Can Bring Value to a Fund
(34:31) Why LPs are All Examining Their Portfolios
(36:42) Should GPs Focus on DPI or TVPI?
(39:01) Why Venture Needs More Innovation
(40:19) How LPs Diligence Managers
(44:15) The Importance of Transparency within the LP Ecosystem
(51:57) What Sapphire Invests In
(53:26) Lessons Learned from Previous Downturns
