Market Reckoning Ahead
A significant reckoning is looming in the private markets, with nearly $10 trillion in assets under management and a notable portion held by VC firms. As valuations are expected to decline, the importance of manager selection and pacing plans becomes crucial for investors. In a low-rate environment, many companies that received financing may not have qualified under stricter conditions, signaling a potential pullback. This period could present a unique entry point for savvy investors, despite the challenges posed by rapid fund raises and the denominator effect.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Sarah Samuels – Framework and Rigor at NEPC (Capital Allocators, EP.264)
Related Questions
How can venture capital scale in the context of the episode 20VC: How Today's Market Changes How Companies Should Approach Burn and Runway, Are Financing Markets Closing? How To Know When To Pay Up vs Stay Price Disciplined & Why The Most Important Thing in Venture is Generating Positive Selection with Bill Cilluf and the clip Scaling Challenges?
How should I think about hiring the right people for my VC growth fund, given the difference in underwriting processes from the seed/early stage investing I currently do, as discussed in the episode How an $80B Asset Manager Seeds the Growth of New GP Talent and the clip Fundraising Challenges?