A great conversation with Matt around how institutional LPs approach diligence. There are so many nuances to underwriting, and seeing the puzzle take shape is the best part of the job.
We had the opportunity to delve into the underwriting practices of two KF27 university endowment LPs, @snudo_spears & Matt Auxier. They discussed aspects of LP underwriting, including return targets, diligence priorities, & integrating VC in multi-asset portfolio construction.
Update on the juicer. My bougie toddler is going on a juice cleanse. Two hours later, we now have a Costco size inventory of oranges, apples, and carrots.
Given the proliferation of new seed funds in the last 24 months, is a differentiated fund strategy even possible? Maybe. But I’m more impressed with strong fundamentals - ops, team, portfolio construction, process - vs flashy “differentiation” buzz words
@DelJohnsonVC There are a variety of constructions that can produce venture like returns. The best managers align their superpowers with their construction. They understand that it is a dynamic model and what levers to pull to optimize their return profiles#