January 12, 2023
Key Takeaways
1. Venture capital is an important driver of returns for leading endowments. Accessing venture capital managers that are likely to outperform takes time, networks, and expertise which create significant barriers to entry for individuals and small investors.
2. Investing on behalf of mission-driven organizations has resonated with the venture capital community. The top managers often have a stable group of existing investors, and are only willing to add new investors if they support values-aligned missions. At GEM, our clients are a key differentiating aspect in this regard and something we are proud the investment community recognizes.
3. Selection is critical. Top quartile venture capital firms have added at least 14% above the S&P 500®, but the median fund has beaten the S&P by merely 2%.
In Buyouts’ latest Emerging Managers Report, Caroline Dallas, a Director in GEM’s Investment Research Group, offers her perspective on the growing independent sponsor market and shares why, for dealmakers who are looking to branch out, now might be the right time to take the leap.
Kelly Barofsky, a Director in GEM’s Investment Research Group, joined Giovanni Amodeo at ION Analytics to discuss GEM’s approach to identifying opportunities in the lower mid-market, including the importance of sector specialization and manager-investor alignment.
Jay Ripley, Head of Investments, spoke with FundFire about the recent close of GEM’s inaugural independent sponsors fund and shared the importance of manager diligence in establishing long-term GP-LP relationships.
Let’s start a conversation about how we can help.
