Partner & Head of Capital Formation @ Altimeter, fmr Partner
@TPG
,
@GoldmanSachs
alum; Board
@PEWINetwork
; Mom of 2; Enneagram 9. No Invest Advice, Views Own
If you're building a venture firm — or really any investment-firm —
@MeghanKReynolds
is an incredible wealth of knowledge.
On our first episode of the year, Meghan lays out how to structure a capital formation practice, and how it's so much more than IR.
Heard from VC LPs this week (more to what I’ve said on DPI):
“Managing our pipeline right now is straightforward. If you had a fund > 4 years old during the greatest exit environment of all time (‘18-‘21) and you failed to distribute meaningful capital, we are a hard no”
THIS. 👇🏻👇🏻👇🏻
And if you happen to be male without women in your life that you care about and you think this doesn’t impact you, our economy, our collective well-being, or future, you are wrong and you still should read it.
Heard from VC LPs this week:
VC just had its Enron/Madoff moment (I’m old - worked through both)
In both cases, LPs made a big shift in what they require for diligence, disclosure and communication. New standards will emerge. No GP - not even the very best - will be immune
Heard from VC LPs this past week (a version of this in 3 different meetings):
“We are really skeptical of any staff working remotely or part time in the office. The best companies, best people and best ideas will not be found sitting alone in your house”
My “heard from” this week is from other VC fundraisers (20 year+ vets)
- Never harder to raise capital
- Hundreds of funds sitting at 50-75% of target, incl. some great funds
- If downturn history serves, ~25% of funds will never raise another fund - LPs wary of “walking dead”
Heard from VC LPs - had a top VC consultant/advisor/FoF share their fresh power law data:
As of Q2, for Fund Vintages 2008-2019, they had exposure to 8,350 companies. 2,700 were realized. Of those exited companies, 5% of the companies (150) drove 70% of the value.
Heard from a VC LP this week:
“Very hard to underwrite anyones track record right now - regardless of how they have marked their portfolio. There are too many bad companies sitting on a lot of cash. We will wait for fallout and dispersion to become more clear.”
Heard from VC LPs this week. Some sound bites from LPs in a 🧵👇
“90% of the people doing VC have no real chance of achieving real alpha. Historical DPI shows this”
“And most forget how much price matters. The whole strategy is built around cheap option bets w/ massive upside”
Heard from a VC LP on diligence
“4 things that I consider: Sourcing, Picking, Winning, & Helping. I look for a clearly articulated approach to each & want to understand which is most critical to a GP’s performance. Are they clearly special at one or more?”
Loved the simplicity
Heard from VC LPs this week:
Skepticism in:
- LLM investments: valuation, exit path, and ultimate revenue model
- Valuation of AI & software deals, in general
Enthusiasm for:
- Long term AI opp set
- public tech
- VC funds w/ DPI & observable discipline
Heard from VC LPs this week.
Moderated a panel with two endowment LPs - one under allocated to VC, one over allocated. - A 🧵 of a few takeaways 👇
1) “Top quartile returns aren’t enough, we look for GPs who can deliver top decile … and access to top GPs no longer an issue”
My heard from VC LPs this week is 10 soundbites from
#UpfrontSummit
. Thanks
@msuster
&
@upfrontvc
team!
#1
“In Venture, the majority of companies will fail. The majority of firms will fail too.”
#2
“DPI is not a catch all. TVPI is distorted b/c of valuations. What we need to
Heard from VC LPs this week, from 1 of the most successful VC LPs in the 🌎(the OG LP):
“Venture is not an asset class, it’s a strategy. And the strategy is not institutionally-derived, it’s personality-driven. And the trait most common to success is tenacity.”
Heard from VC LPs this week: One of the biggest LPs in the 🌎
“If we invest in 5-10 GPs a yr, & they invest 100s of deals we end up w/ exposure to 1,000s, which gives index-like returns. For us it isn’t worth it. We would rather invest w/ a select few or not at all.
#powerlaw
Appreciate the tweet shoutout
@DavidSacks
. My dad - retired school teacher &
@theallinpod
fan now thinks I’m famous! Last time my parents were this proud of my prof. accomplishments was ‘08 when I won a
#GoldmanSachs
cookie baking contest w/ an old family recipe
#notkidding
🍪😂
Heard from VC LP this week,
Q: “what’s your biggest challenge at the moment”
“All GPs - not just VC - raised 3-4 yr money and deployed in 1-2 yrs, or less. Our cash flow and commitment models are completely out of whack”
Heard from a VC LP this week:
“If you just had liquidity on Byte and Stripe, it would release an incredible amount of cash back into the system - I think most people don’t realize how many LPs’ overallocation issues could be solved by one or two companies”
Great VC chat on
@theallinpod
114. Power law: <20 VCs have distributed >$1B on a deal. Haven’t seen the
@PitchBook
data, but I know one that sent >$5B to LPs on a deal in ‘21 😉
Agree w/ winning formula: commercial instincts + technical bench + cap mkts mindset
@altcap
@chamath
Heard from VC LPs this week (1/2)
“It’s been ~18 months w/out a single distribution from VC funds while at the same time we have been getting pretty meaningful capital calls from our buyout funds that have been clearing their credit facilities. The lack of liquidity is brutal”
Heard from VC LPs this week:
“We model funds for 16-18 yr life”
My friends
@Samirkaji
and
@joinallocate
have the data, avg is ~14yrs
I’ve been in the industry for 20+ years & only once I’ve seen a fund wrapped up in 10 yrs
And yet, LPs usually look for DPI within 5 yrs 🤔
Heard from VC LPs this week:
Some 👍🏻 feedback from my talk at
@Jason
‘s
@liquiditypod
conference. Sharing a slide here that resonated.
GPs, if hard to raise, this basic formula explains it. Complexity so often underestimated by GPs, but LPs see right through it…
Heard from VC LPs this week:
- LPs capitulating on sales of fund interests; diversified high quality portfolios (not just VC) clearing at 30-35% discount to NAV
- Similar to buyout in GFC, sentiment shifting away from “mega” toward sector focused, thematic and midsized funds
Heard from VC LPs this week:
Heading into 3Q marks, much discussion about pending write downs and how much value created in recent years will actually turn into $$ distributed to LPs. Historically, Top Quartile DPI has exceeded 2x in only a small handful of years.
Heard from lots of VC LPs this week as annual mtgs brought everyone to Sand Hill Rd:
“NYC & London feel so depressing right now. We are in tough times, but being out here talking about super cycles, innovation & solving the worlds problems through data/AI/ML is so refreshing”
Heard from VC LPs this week, from a top VC consultant to large institutions:
“For funds raising right now, on average about 40% of their capital from the last fund is coming back from about 80% of their existing LPs”
GPs raising in ‘24, plan accordingly!
Last Heard from VC LPs for the year!
My fundraising predictions for ‘24
#1
. 23 was bottom for $$ raised in VC, but ‘24 will still lag ‘19-‘21 by $$ raised. The # of funds closed will still be historic lows - winner take most dynamic and toughest for emerging / young VCs
Heard this week from VC LPs:
- Clearing in secondary mkt for LP stakes of VC funds = 60%+ discount
- Institutional ‘23 commitments are planned by now. Good luck if not on list.
- One LP - “VC is 10% of our portfolio but 30% of value - still few seed/early stage markdowns
Heard from VC LPs this week, SVB edition.
This one calls for a🧵...
1) LPs scrambling to understand SVB exposure. Institutional LPs have 100s of funds, 1000s of underlying companies. Their CIOs and Boards want to know understand exposures & risk in real time. Impossible task.
Heard from VC LPs, Crypto edition:
- crypto winter delaying inst. $$ to funds by 12-18mo
- $ will go to scale GPs w/ track record of portfolio mgt (“no one gets fired that”)
- “most of the 100 funds I met last qtr raising $20-$75M by people < 28 won’t make it”
- LPs drive terms
Top of mind for VC LPs this week:
- Valuation sobriety LPs want framework for understanding portfolio quality
- Sequoia Annual Mtg lots of debate about permanent fund
- Publics in private funds, as distributions slow will want $
- Crazy high bar for $ and mtgs. DPI opens doors
Heard from VC LPs this week:
My family loves Jeopardy, so in honor of 🦃 … a quiz!
According to the latest Cambridge US VC benchmarks, since 1998, this is the # of years that the threshold for being Top Quartile DPI has exceeded 3x…
What is ONE! (2010)
Heard from VC LPs this week;
“We are seeing deal activity pick up pretty dramatically across the board and expect a wall of capital call activity coming in Q4. Without any distributions, you will likely see a lot of LP-driven secondaries to fund the capital calls”
Great VC data here from
@JPMorganAM
My takeaways:
Chart 1: Must invest with the top GPs, or simply not worth it - dispersion will kill returns
Chart 2: Must allocate consistently. In majority of last 10 yrs, VC was top performing asset class, but in 3 yrs it was the worst.
Venture capital return dispersion will soon break into negative territory for the bottom quartile
2022 will likely be a negative return year for venture
Finally, both private equity and venture exits are down significantly because IPOs have practically disappeared
Heard from VC LP this week re: return expectations
“We are focused on outperformance vs VC & public market equivalent benchmarks, but it’s hard to expect >2x net for a Megafund w/ 100+ companies. Seed/early stage need >3x net for the risk. Everything else somewhere in between.”
Heard from VC LPs this week. Lots of great convos this week: (1/3)
“We are starting to add in venture/growth for the first time, because access to top names is no longer an issue. Names that wouldn’t call us back two years ago are flying in to see us. Big E&F losses = our gain”
Top of mind VC LPs this week:
- LPs with lots of VC exposure “pruning” $$ sizes down
- Secondaries (LPs selling interest/slice of interest) heating up. Clearing @ 20-30% discount.
- Big LPs want to add crypto to portfolio but some resistance from boards/CIOs
#knowyourcustomer
Heard from a GP this week - adding this to my IR rules to live:
“My mentor always said, treat your $5M LP just as good as your $100M LP” —> When their team spunout of their previous firm last year, a $5M family LP backed them with $1B (yes, that’s a B)
🤯 ❤️🥳🙏
Heard from VC LP this week:
Reflecting on “the world doesn’t need another venture fund”
“There was never a truer statement. There is simply too much undifferentiated product in the market. In what other market do you have thousands of choices to pick maybe 1 or 2 [new GPs]”
Venture TVPI-->DPI: How it started / How it's going. A 🧵👇
How it started... In Oct '22, I asked how much of peak VC values (TVPI) will become real distributed profits (DPI), later discussed on
@theallinpod
& w/
@altcap
. In Apr '23, I illustrated that for internet boom
Heard from VC LPs this week (a chat with a large advisor/consultant):
“Everyone talks about dry powder in VC. Yes, dry powder is at an all time high. But dry powder as a % of NAV is at an all time low. There’s not as much capital available to support companies as people think.”
Heard from VC LPs this week:
Many LPs awaiting inevitable markdowns to chart VC path forward.
@altcap
and I looked at data from past tech bubble Peak TVPI to Final DPI to illustrate what is likely coming (40%+ markdowns even for Top Quartile VCs)
Heard from VC LPs this week
Topics that come up most often in LP convos these days:
- 12/31 valuations
- AI - who wins - incumbents or new?
- China - setup looks interesting
- seed/early VC - who are best hard to access funds
- cleantech/climate - is this finally the time
Heard from VC LPs this week:
As gloomy as markets can feel, in institutional LP-land there are no knee jerk reactions - no forced selling despite over-allocation, commitments continue though may be smaller, (don’t miss good vintages) and many seeing an opportunity to upgrade GPs
Heard from VC LPs this week.
2 of the largest pools of capital in the 🌍 were asked the Q, “what makes for your best GP relationships”
- fluid communication
- trust
- mutual value add
- shared insights / access
A reminder that returns (not mentioned) are table stakes
WSJ whiffed w/ this clickbait headline. Been raising PE/VC capital for 20+ yrs - MidEast Sov Funds are among the most sophisticated allocators in the 🌎 YES, GPs are showing up in droves but apertures are narrowing & vast majority coming home empty handed
I've long said that secondary tech of buyouts was coming to VC.
@sequoia
offering early LPs liquidity in Stripe, with later funds buying is right out of the playbook of buyout darling H&F. Given
@sequoia
isn't taking carry on the deal it feels well-aligned. Will be a great
Heard from VC LPs this week:
@stepstonegroup
&
@hamilton_lane
gave annual market reviews. When they talk, I listen closely. Why? Their data, relationships, & toolkit (great team, fund, commits, secondaries, coinvests) make them very strategic to the GP/LP ecosystem. Takeaways👇
Heard from Middle East VC LPs this week, a whirlwind 🌎 ✈️ with
@altcap
and
@jaminball
A 🧵👇
1) “Right now we like $500-$1.5B sweet spot funds, anything more and >2x net TVPI is highly unlikely and we aren’t big enough to be an important LP”
Heard from VC LPs this week:
@PaulJDavies
tweet of
@Burgiss
data sums it up. No liquidity means the VC portfolio is not funding itself. You can’t fund new commitments without selling another asset, and who wants to do that right now? Look to this chart to predict fundraising
Great discussion on
@theallinpod
ep 108 on LP perspectives - expected TVPI declines (
@altcap
chart revisited) and LP focus on GP’s getting liquidity.
@Jason
your comments brought me back to this observation from July (discussed episode 88) - very much still applies!
One last heard from VC LPs for ‘22.
Lots of talk about fund size. LPs demanding rationality. Fund size needs to be driven by bottoms up portfolio construction & reasonable pacing expectations. Next Fund = 1.5-2x Last Fund is over for awhile (See buyout ‘09-‘13)
Here’s to ‘23!
My
@Uber
driver at 3:30am (flight delays!) was a mom of 4. She drives for Uber at night b/c she has no paid maternity leave as a FT dental assistant, her 2 month old baby was premature & she had a tough csection.
@dkhos
extra ❤️ to Uber Moms like Abigail.
#momsdeservemore
Heard from VC LPs this week: (late post - last beach weekend for us!)
General observations from LPs on Q2 marks across VC portfolio:
- late stage down ~15-30%
- mature mid stage down 10-20%
- more recent funds / early stage flatish, some even slightly up
Heard from VC LPs this week:
Commitments up from ‘23, w/ a clear LP bias for smaller funds & early stage VC (heard from large pensions to family offices). Makes me consider implications of imbalance - will it lead to small funds getting larger and/or early migrating later?
Heard from VC LPs this week:
GPs must have a well calibrated LP barometer to determine whether they have the support needed to raise the next fund. LPs like optionality - “we will do the work” doesn’t mean “we are in”
Especially hard time for Fund 2s/3s with no DPI
Heard from VC LP this week, an advisor/fund of funds:
“Our clients have a collective hangover from the Growth/VC party of the last 2 years and there is little appetite for new commitments. But the hardest time to fundraise is usually the best time to invest. And versa versa…”
Heard from VC LP this week:
“We are going on 2 years w/out investing in a new GP (though we reupped w/ some existings). We are starting to consider new ideas for ‘24 but unclear if we will do any.”
Fundraising winter thawing, but expect most $$ raised in ‘24 will be reup vs new
Heard from VC LP this week:
The most important factors in building partnerships:
1) are these good people that I want to be in business with
2) do I learn something from them when we interact
3) are there a tangible factors that position them to outperform
No “heard from VC LPs” this week thanks to COVID 😷, so I thought I’d throw together a 🧵 on Five LP Communication Principals. Just reflections from a long time working with LPs. Applies to communicating both good and bad news. Enjoy!👇
Heard from
@theallinpod
Summit this week in pics:
1 Besties doing what they do best
2 My colleague Michelle w/ humble giant
@MrBeast
3 A hug w/ Dr Paulk
@SirenBio
for curing brain cancer
4 Barbie party joy
Review: ⭐️⭐️⭐️⭐️⭐️like an improved highly efficient version of college
Heard from VC LPs - beyond this week - for all of ‘23
“Concentration”
LPs investing more with fewer GPs, investing in fewer GPs altogether & concentrating time/$$/energy in themes, strategies, teams that are most compelling
Natural result of the cycle & lots of implications
Heard from LPs this week
@iconnections_io
edition
On organizational complexity being an enemy of return: “There’s a reason why the military special ops teams are small”
On size being an enemy of returns: “Name three $1B+ VC funds with DPI of 3x+..I don’t think there are any”
Heard from a VC LP this week, two great sound bites:
1) “Growth is dead. The only new allocations are to funds that force a staple to their growth fund”
2) “We are at a unique moment. Market highs, Credit Spreads tight. And yet Endowments are still struggling for liquidity. “
Good chart from JPM Alts Review.
Interesting that VC vintages 8-10 years old (‘13-‘15) have 50%-80% of value unrealized. Let’s get those 🦄 🦄 public and let the market decide what they are worth !! (I know
@altcap
agrees!)
4) LPs can’t evaluate
VC track records like other asset classes b/c of power law - it’s not about returns spread across the portfolio. The analysis should be: did you get at least one home run that drove big $$ + how many base hits + did you avoid putting $$ into zeroes
Heard from VC LPs this week. 2 topics:
1) Annual mtg for top GP. The LP takeaway: AI wave huge, but most $$ invested today won’t deliver VC returns b/c a) valuation or b) no durability of rev
2) Big AI deals shown widely via co-invest SPVs. Easier for LPs to access than GPs?
Heard from VC LPs this week:
We have officially crossed the chasm with AI for LPs. Took six months, but there’s not a single investor - from small HNW to large pensions & sovereigns that’s not considering their AI exposure in their private & public equity portfolio.
@Uber
to SFO today, chatted w/ our driver who reminded me of my Dad. He began driving after losing his wife of 30 yrs to colon cancer. "It saved me", he said. "So many of my riders share their stories and I feel like they need me to listen. It gave me purpose to live again" 🥹
Heard from VC LPs this week:
Many LPs in Miami for Thoma Bravo’s annual mtg. Heard they launched raise of $34B - Fund 16 & Discover Fund. They last closed $32B for both in 2022.
In 2012, their Fund X was $1B, and a “middle market” darling
Makes me think about VC evolution…
Heard from VC LPs this week:
So much LP time/energy being spent on private credit and secondaries. Incredibly consistent answer to “where are you spending time these days”.
[Makes me even more excited for this growth / VC vintage]
Heard from VC LPs this week:
On investing in a Mega Fund: “We think of [Big Fund X] as our venture beta. We don’t expect big outperformance given size of fund, but we expect the brand will deliver better than avg deal flow and experience will deliver better than avg selection”
Heard from LPs in the MidEast this week: a 🧵
For the avg GP, the probability of raising $ in the MidEast is same or lower than anywhere else. Access/deal flow there is 💯. Top funds have a regular presence, some even opening offices. Chinese funds all there as hard to raise
Heard from VC LPs this week:
Reflection on HF vs PE/VC fundraising
HF: Cap Intro teams at the funds’ Prime Broker act as intermediary btw for LPs & GPs for efficient matchmaking
PE/VC: ~5,000 open funds all calling LPs directly (only 12% use an agent)
PE/VC model = broken
Heard from VC LP this week:
Small state university endowment told by VC fund if they reduce their size in the next fund below a certain amount, they are no longer welcome.
My view? My best to that VC fund -- LP karma is real.
#treatyourpartnerswell
Saw this in buyout in ‘08 - shifting fee structures for funds where little capital deployed. If playbook repeats - next would be giving LPs option to reduce commitments (eg up to 20%) for under-deployed mega funds.
Heard from VC LPs this week:
The slow pace of capital calls & the rally in equities this yr has eased over allocation/liquidity concerns for LPs. But the amount of VC dry powder in the system continues to stall new commitments (“we will have plenty of exposure to this vintage”)
Heard from VC LPs this week:
The “pig in the python” effect remains for institutional VC commitments, but a sentiment shift is happening this summer for public/private tech. Pricing dynamics, public performance, AI innovation, & IPO window visibility driving new enthusiasm
Heard from VC LPs this week:
The entire LP community is now digging out from 7 weeks in back to back GP annual meetings. Post Covid, a large portion of annual meetings happen in the fall.
When trying to fundraise, knowing the rhythm of the life of LPs is critical.
A fundraising reflection this week:
A GP could have 50 deals or 500: Most firms will have 1-2 deals that define a brand with LPs (good and bad). Case studies that live on forever.
May your good be very, very good and your bad be not very memorable
Heard from VC LP this week - the “numerator effect”
“Deal pacing + liquidity has slowed, but anyone that has a mature private markets portfolio (PE + VC) is still experiencing big capital calls as PE GPs clean up credit facilities - mostly deals that were 6-12 months ago”
Heard at LP panel at Sahar PE/VC Summit:
“We looked at data - 71% of funds actively fundraising have been in market for over 12 months”
Also, “we are seeing a lot of requests for extension of fundraising timelines - many for up to 12 months…we are strongly advising against it”
Heard from VC LPs this week - contrasting convos🤔
1)Pension starting VC now- (access/AI supercycle) vs Family office slowing VC -“excess capital/elevated prices here to stay”
2)Top placement agent (“impossible to raise”) vs 2 spinout GPs (“demand is there”)
Sounds like thawing
Pace yourself, folks! Great chart of the week by Arctos Partners would suggest we are about half way through the fundraising recession.
(PE = Buyout + VC + Growth)
3) most important factors in evaluating a GP beyond track record = consistency of strategy (does your portfolio reflect what you are selling to me), team stability and willingness to be transparent
Heard from VC LPs this week, some perspective on fundraising volume:
I think the ‘23 figure below is overstated as most of that capital took a year or more to raise. Word from LPs is how few funds have raised this year w/ most pacing slowing dramatically / raises pushed to ‘24
My heard from VC LPs this week brought to you by my partner
@altcap
- bestie guestie on the
@theallinpod
Ep 118. Sums it up perfectly!
- 10 yr view
- selectivity ++ driven by power law
- tough for GPS with no DPI
@jason
tees up “current LP mindset” at min 25
I started my career in the secondary PE mkt (proud alum of
@GoldmanSachs
Vintage Funds). Entire annual volume of secondary mkt was <$1B; selling an LP stake was considered a faux pas. 20+ yrs later, incredible to see how this mkt continues to evolve and I think just getting
Heard from VC LPs this week:
“It’s hard to evaluate GPs based on our historical frameworks. Benchmarks are useless with varying valuation approaches. Turnover has generally been viewed as bad, but turnover following a bubble can be good. Access matters, but it’s tough to judge”
Heard from LPs this week, a conversation with a leading cap intro team:
“With public mkts rallying, liquidity pressure eased, but ALL new $ flowing into Alts in ‘23 went into credit. $ flowed out of TMT, not in…” (just as tech outperformed)
Classic LP dilemma, the investment
The focus of SVB discourse is on the impact to VCs, and startups. It's important to remember that the capital at risk is the capital of the great causes of our country/world who have funded the entire ecosystem. (1/2)
- Universities
- State Pensions
- Foundations
- Sovereign $
Heard from VC LPs this week:
- Tactical allocations to take advantage of market turn; opportunistic $$ being raised Coatue & others
- LPs feeling first reup reprieve since ‘18; slower GP pacing stretching fundraising to ‘23
- GPs being evaluated for level of restraint in ‘20/‘21
Heard from VC LPs this week. A few sound bites:
- “I have 20 GPs and 11 of them are coming back to mkt next year”
- “I ❤️ growth but I get all my growth from early VCs that stuff me into their Growth funds”
- “LPs all agree on the top 5 early VCs...
#s
6-20 are a big debate”
Heard from VC LPs this week:
2 of the largest pools of capital in the world, considering public tech in size for the 1st time, alongside VC/tech buyouts. The sentiment “massive winners in the AI Super cycle won’t just be in private markets” starting to shift allocations
Heard from VC LPs this week @ Women in VC summit:
- Not getting the “LPs are pissed” vibe that’s being reported, but they are demanding change
- 1st up on the chopping block is the “all or none” strategy of GPs insisting LPs go in every strategy they raise. Non starter today
Amazing how the market has quickly forgot the j-curve. For my first ~15+ yrs in the industry, the expectation was that your IRR would be negative in VC for the first 3 years at minimum. Marks/IRR weren’t considered meaningful until year 4-5.
I was drawn to
@altcap
and Altimeter because they have always taken to heart the duty to serve LPs’ great causes. Together we know there is even more we can do to advance the game w/ great investments, transparency and partnership thinking - especially during volatile times.
At Altimeter we strive to be the best partner to both Founders and LPs. So I’m thrilled
@meghankreynolds
joins as my Partner to help lead VC $$. She’s a PE/VC vet, an expert in serving LPs, and an even better mom and human. Care about LPs? Follow her 🔥🔥.
#keepbuilding
Heard from VC LPs this week (and for the last two months)
Most consistent comment: “We are only adding select early VC, have plenty of late stage/growth”
Most consistently inconsistent comment: the answer to the question “what do you consider early?”
Heard from VC LPs this week:
The chatter re Mega VC is reminiscent of post GFC sentiment w/ Mega Buyout. Similar playbook starting: first close mgt fee discounts & hiring on fundraising teams. Watch for big strategic partnerships w/ sovereign/pensions w/ co-investment/discounts