Peter Lacaillade: Why Now is the Best Time to Invest in Emerging Managers | E1096

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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.

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Timestamps:

(0:00) Intro
(00:44) Entry into SCS
(03:00) Impact of 2011 Market Timing
(13:38) Quick Assessment of Manager Quality
(15:42) Insights into Peter's Role as an LP
(18:05) Lessons from Mistaken Intuition
(20:13) Funding Diversification Strategies
(23:35) Analyzing Recent Vintage Performance
(26:19) Evaluating Resources at Founders Fund
(27:19) Ideal Timing for Onboarding New Managers
(35:18) The Role of Direct Investing
(39:59) Understanding GP and LP Differences
(44:18) Capital Needs for Co-Investment Programs
(48:32) Current LP Investment Attitudes
(52:36) Liquidity Management Strategies
(01:15:45) Quick-Fire Round

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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?

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