What key attributes institutional LPs look for when choosing to back emerging managers
E16: Beezer Clarkson on her new $1.4B Emerging Manager Fund with CalSTRSWhat key attributes institutional LPs look for when choosing to back emerging managers
E16: Beezer Clarkson on her new $1.4B Emerging Manager Fund with CalSTRSElizabeth "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
(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