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Allocator peers I have come to know well throughout my career have, at one point or another, strongly recommended or shamelessly professed their love for a particular manager. I am guilty of doing the same. Nerding out on managers with compatriots who share a similar passion for investing is actually the most fun part of […]

A few weeks ago, I posted Part 1 of the “Unbearable Lightness of Being a Fund 1”. As promised, I am delivering Part 2 of what I hope is helpful guidance, or at the very least, interesting and concise reading material for current and future Fund 1 managers to ponder, challenge, and compare to their

After over two decades of investment manager/sponsor assessments, I have concluded that “the worst time to conduct due diligence on a GP is when that GP is officially fundraising”. Although this statement has provocative overtones, embedded are large deposits of truth that I will attempt to excavate and refine convincingly. I respect the established conventions,

On the surface, the common maxim “capital is capital” might seem to predominantly drive GP decisions when raising capital. However, seasoned fund managers will be the first to tell you that there are strings attached to where their raised capital originates. Obviously, the fund and its strategy are the unifying factors for all who seek

Bearing the moniker of a first-time fund can sometimes feel like you are walking around with the words “cursed” or “kick me” tattooed on your forehead. Even from my privileged viewpoint as an allocator navigating inbound capital requests all day, the visible angst of a manager pitching his/her first fund can unescapably affect the mood

Taking time to process the sheer number of private deal sponsors in the investment market can be extremely disorienting, yet many asset managers turn coy when asked about competitors. Their assumption seems to be that providing accurate information about their rivals makes them look less unique or is some sort of self-inflicted injury caused by

Almost everybody has heard these sage words of advice from a parent, guardian, coach, pundit, teacher or mentor: “if something sounds too good to be true, it probably is”. In the world of finance, this assertion particularly forms the bedrock of the psyches of investors. Instinctively avoiding opportunities that seem just too simple or too

There is one thing that every GP/sponsor has up their sleeves when challenged about what makes them unique, which is their people. Since no two individuals are alike, it stands to reason that no assembled teams are identical. Here, “unique” implies neither “good”, “strong”, “efficient” or “elite”, but rather that a combination of people is a

Most investors will swear on their firstborn child that they seek to partner with investment managers who can create value through varying market conditions. Despite market cycles being a broadly acknowledged inconvenient truth, finding cycle-tested guides to navigate ongoing market turbulence is also widely accepted as a panacea. Identifying investment firms with the personnel, experience,

With 48 weeks of weekly writing under my belt, I now feel like a DJ who’s played some old crowd favorites, some new weird stuff that the kids are currently vibing to, and his own collection of underground bangers. Although there remain several unplayed jingles that could keep the party going, we now seem to