@hpierrejacques 5/ Subject to negotiation with LPs:
Scale: 10% recycle? 20%? 25%? (this is what https://t.co/5ldht4F9CQ does)
Timing: Within investment period only? Life of fund?
RoC vs. gains: Applies to any return of capital? Or just from gains?
@hpierrejacques 4/ Also presumptive that LPs want recycling:
Pro: they get +/- 100% of their capital invested vs. 80%
Con: to do so they "re-risk" capital by forgoing collecting early gains in favor putting that money back to work in the fund.
Most "sophisticated" LPs get this, and go for it.
@hpierrejacques 3/ This is all presumptive of early hits that enable recycling (i.e., if the fund has no early exits then all this is moot), but in concept a bullish/confident posture.
@hpierrejacques 2/ Cutting fee period to 5 years would be super bullish signal (i.e. you'd rather invest a dollar to build carry than just take it off the top as fee) but of course significantly impacts fund operating capital
@hpierrejacques 1/ Very useful analysis, but I think Scenario 3 is mixing two ideas together by cutting fee period to 5 years - applying Scenarios 1 & 2 terms (10 years of fee) with $20m recycle to Scenario 3 yields the same results without cutting fee.
Really great conversation today at #3RVF talking about "The Corporate Venture Capital Value Proposition" This is an increasingly important topic for entrepreneurs across the country but especially in #Pittsburgh given the areas of innovation like AV, healthcare & deep science
@SeanAmmirati's prior academic research led to "Science of Growth" and has informed @BirchmereVC investing - I expect "Agile Giants" will do similarly.
After a lot of work over the last month, I’m excited to announce a project I’ve been working on. I’m launching a podcast - Agile Giants. You can subscribe / listen here on iTunes https://t.co/9EtYb8GybN
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#StrongerThanHate#LetsGoPens
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Pittsburgh Mayor Bill Peduto leads his city through its darkest days https://t.co/xfIIOIjET0
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Andrew Moore steps down as dean of CMU's School of Computer Science https://t.co/1TuoPOJM5l via @PittsburghPG @LinderPG
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Exceptional, articulate thoughts from a proven leader in business, military, and civil service - THIS is how we truly make America great again. Happy birthday, America! https://t.co/giHrrK8xD6
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Thoughtful analysis on why America needs more #veterans in leadership positions - across business, media & politics.
https://t.co/ESHQIVxy3U
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How he built a $700 million company and much more - https://t.co/XULgDsZoDm #Startups
Unbelievably stupid!
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