20VC: Why Now is the Best Time to Invest in Emerging Managers, Biggest Mistake Emerging Managers Make When Fundraising & Investing Lessons from Investing $1.5BN Per Year and Being Early Investors in Thrive, a16z and Founders Fund with Peter Lacaillade

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC

Finance, Venturecapital, Tech News, News, Siliconvalley, Technology, Investing, Startups, Business

4.4 • 637 Ratings

🗓️ 18 December 2023

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

Peter Lacaillade is a Managing Director @ SCS Financial Services where he leads its private investment program where he oversees the firm’s activities in private equity, opportunistic credit and private real assets. Peter has been an early backer of Thrive, Founders Fund, a16z, Greenoaks and 20VC. Before SCS, Peter was an Associate at HarbourVest Partners in its Secondary Group where he analyzed venture capital, growth equity and buyout investments.

In Today's Episode with Peter Lacaillade We Discuss:

1. Becoming One of the Great LPs in Venture:

How did Peter make his way into the world of fund investing as an LP?
What does Peter know now that he wishes he had known when he started as an LP?
Why does Peter believe now is the best time to be investing in newer, emerging managers?

2. How to Pick the Best Venture Managers:

What are the commonalities in the best VCs Peter has invested in?
How important is track record for Peter when evaluating managers?
What mistakes has Peter made when it comes to manager selection? What did he learn?
How do the best managers build relationships with their LPs?

3. Building a Portfolio That Can 5x:

In a venture fund portfolio, what is the distribution between those that outperform, perform as planned and then underperform?
How does Peter invest in both large franchises and emerging managers with a barbell approach? How much in established franchises and how much in emerging managers?
Are managers actively marking down their portfolios in the last 18 months? Who has been the best at this and who has been the worst? How much should portfolios be marked down?
How does Peter evaluate the compression of deployment timelines we saw in the last 18 months?

4. A Breakdown of the LP Landscape:

Family Offices: What are the biggest dangers of having family offices as LPs? Why do multi-family offices tend to be better?
Endowments: Are they really as stable as people think they are? What separates a good vs great endowment? Who stands out?
Fund of Funds: Why does Peter think fund of funds deserve more credit? How should managers think about working with FoFs most effectively?
What is the right level of concentration managers should have between these different LP profiles?
What are the biggest mistakes emerging managers make when approaching LPs?

Transcript

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0:00.0	Three to five exceed expectations. Three to five meet expectations. One to three underperform.
0:05.8	It's a really good time to start a program. If you want to get into badass, really good
0:09.8	managers right now, you can do it. You've got to build a basket, right? But the basket, I think,
0:13.4	can do five X of those seed funds versus what do I think like a franchise firm can do?
0:20.6	Two and a half half three X net?
0:21.7	This is 20 VC with me, Harry Stebbings, and today we sit down with one of the best
0:25.6	LPs in venture.
0:26.8	As a reminder, an LP is a limited partner, LPs invest in venture capital funds.
0:31.9	And there's no better than our guest today, Peter Lacallade, managing director at SCS
0:36.2	Financial, where he leads their private investment program,
0:39.4	overseeing the firm's activities in private equity, opportunistic credit and private real assets.
0:45.0	Peter has backed some of the best venture funds of the last decade and was an early investor and
0:49.3	founders fund, Thrive, Green Oaks, Andrescent and of course 20VC.
0:54.0	I want to say huge thank you to Peter.
0:55.7	He's been the most incredible friend and partner to me in building 20VC. He really is one of the
1:00.7	best, and I feel very, very lucky to work and build with him. But before we dive into the show today,
1:05.7	I love any innovative approach to venture and startups. And that's why I love arising ventures.
1:10.7	They're a holding company that acquires tech startups and startups, and that's why I love Arising Ventures. They're a holding
1:11.3	company that acquires tech startups facing difficulties, and they help them reach their true
1:16.0	potential. The Arising Ventures team are tech founders. They're not bankers, so they know what other
1:21.2	founders really care about. They've given many great businesses a second chance at success. Like
1:26.5	Jive, a business Arising Ventures
	...

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