Elizabeth "Beezer" Clarkson, Partner at Sapphire Partners, discusses 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.

(0:00) Episode Preview
(0:57) The Importance of LP Voices and Sapphire’s Partnership with CalSTRS
(2:15) Why Investing in Emerging Managers Have Such a Unique Dynamic
(4:09) The Role Emerging Managers Play in the Construction of a Compelling Portfolio
(6:16) Thousands of Emerging Managers vs Forty Established Funds
(7:30) Does Excess Capacity Translate to Adverse Selection?
(8:17) “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