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On a routine due diligence call last week, the conversation, as it usually does with venture managers, turned to the concept of Power Law –  the notion that venture capital distributions/returns are skewed by a few extreme events driving overall outcomes. This theory is one that VC managers have espoused through actual historical occurrences (track […]

What began two years ago (November 12, 2023) as a way to avoid feeling like a total loser after some professional turbulence has now evolved into a weekly cathartic mental health exercise that demands ongoing self-reflection, unwavering honesty, and personal discipline. My very first post, “Breaking a Culture of Echo Chamber Investing,” unconsciously served as

In challenging fundraising environments like the one most GPs are currently facing, relying on re-ups (existing LPs re-subscribing to the next fund) is one of the few nearly certain aspects in an otherwise highly uncertain fundraising process. In my view, re-ups are a psychological game of Twister that GPs and LPs play, which can be

I have spent the last several weeks speaking with a wide range of investors, allocators, and LPs to gauge their views on the market and how they have been deploying capital over the past 18 months. I have always found it insightful to compare what I am feeling with peers who may have similar or

As Halloween approaches, I thought it fitting to write about something that has been haunting me for the past several years. This topic doesn’t exactly fit into the LP/GP relationship scenarios I usually analyze, but slime from its far-reaching tentacles affects almost everyone involved in private investing. I remember starting my career as a private

As my weekly posts began to gain momentum, around the time of my fifteenth post, the most frequent comment I received was “how long can this last, given the limited number of substantive topics related to the LP/GP dynamic?” I wasn’t sure how to feel about the comment because it wouldn’t be my initial knee-jerk

There is no shortage of examples where LPs have gotten too high for their britches. The intoxication of being the party that brings capital to the table can foster a lot of reprehensible behavior. Arrogance, rudeness, domineeringness, and strongarming are a few less-than-kosher LP traits that many GPs have had to endure. Don’t get me

A prevalent complaint I hear from all GPs, regardless of type, is that they find it increasingly difficult to determine what LPs really want. Amidst the loud and sometimes conflicting cacophony of “best practices” advice, even the most diligent and attentive GPs can find themselves chasing their own tails when attempting to please LPs. Emerging

Although outsized returns will always be the bedrock of an investment manager’s reputation, as consistency, reliability, and tangibility of returns are in the process of being established, I have seen GPs thrive due to a variety of other factors. “Transparency” and “mystique” are two such factors that have lofted managers to notable heights. Deciphering which

The inescapable pressure to craft a compelling narrative ominously looms over the heads of GPs like an existential guillotine. The meaning of the term “narrative” is nebulous enough that LPs and GP fundraising guides can use its ambiguity as a punitive tool, but clear enough that GPs recognize the importance of developing it to stay