YouSaid · the spoken record

Lisa Edgar

lines on the record: 32
first: 2019-11-04
most recent: 2019-11-04
sittings or episodes: 1
sources: podcast

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“And it was in a little ways my baby, but it was a long process, and I will say we've had lots of long conversations with the two GPs, and it's really a partnership now. We've done a co-investment with them, and they've spoke at our annual meeting, so it's a relationship now, but it was really, we were looking for something, but I already had known what they could do and had a very positive feeling about their ability to make money.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a re It was a small seed emerging manager. We originally did the first investment because it was someone that would come to me on a regular basis. We developed a relationship and every year it would call me up, this is what I'm doing. These are the companies. This is what happened. And he was making incredible progress. But it was a very small fund. And it wasn't anything that we ever went and invested in. It wasn't really institutional. And then a few years ago, we created what we call our alpha manager portfolio, which is small funds, essentially mostly seed. And this time it fit. And we thought, okay, well, we're going to do portfolio construction. We're going to make sure we have enterprising consumer, geographic diversification, and we invested. And there was some hair on it, I will tell you the structure that he had with his investors. We had to work it through a little bit. But it's just an amazing, it's been an amazing journey. And now we just did a re-up with this person. And that was the most recent one I did.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“As I said before, I'm actually here in London. We opened up an office recently. So it's a challenge and a real opportunity. And it was really great for me to come here to really learn what's going on in VC and then figure out how we're going to construct a portfolio to kind of mimic in some ways what we're doing in our main fund. We invest in funds. We do secondaries and co-investments. But just that the opportunity, it's a challenge, but a real opportunity for me as well.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, there's podcasts like yours. I mean, exactly. I mean, think how many people, I mean, you know this, how many people listen to your podcast and get inspired and learn from all the greats that you've had on there. And there's just so many different ways to learn today.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Find that you could find so many things on the internet. This is just a great story. So if we commit, there's subscription documents, which you all hope to get, and some of you probably have them with you, and you're hoping somebody might sign them today for you. Had people pull them out before. We were asking our third year associate because we had some changes on our legal team, could you maybe fill these out? Okay, that's crazy to ask that they're super smart. And they were filling them up. I said, how the heck did you do that? We just Googled what that term meant and we could figure out which box to check. And then, of course, we put it through our legal and then outside counsel and everything like that. There's so much workshops and seminars like this.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll tell you two things. It was this great story. I was a kid, I was reading it. A sister and brother lived in Connecticut. They ran away from home and went to the metropolitan Museum of Art. That's where they lived. They had to figure out during the day how to blend in and at night how to hide. And then they lived in the Met for a while. Now, there's more to the story while Frank Weiler comes in. I'm not going to tell you about that. But the reason why I say, I don't know favorite book, I go to, I love art museums, go to the V&A. I was just in Dublin, go to an art museum. And sometimes I'm walking around there and I remember that story. It sticks in the back of my mind like, oh my gosh, if this place closed and I got to live in here all night, I get to sleep on some of this wild furniture. I can lay in front of this painting, you know? I know that's weird. That's the answer, though.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Think I say some great novel, some business book, but I'm going to really throw you a curveball. It was written in the late 60s. It's a children's book, and it won a Newberry Award, and it's called From the Mixed Up Files of Mrs. Basil E. Frank Weiler. Tells you a lot”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“What do we do? And what we worked on in a room at an off site one time was really about company culture and mission statement vision and those kind of things that we've all done a million times. But for us it lasted and we came up with four words, leadership, trust, transparency, and respect. We call it letter, LTTR. And today, if you actually asked any of the now 35 employees at top tier what letter means, they'd be able to tell you what it means, what it means to them about how we act, how we discuss it. We have a culture committee. And, you know, it's in the performance reviews and stuff like that. So I do think, you know, you have to do I want to build something that's going to last beyond me and what does that take?”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“he had a consulting practice and originally it was about building resilient teams so we hired him straight off and we said well we want to be a resilient team there's 11 of us you know”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“We have a blog, and it's about generational transitions because it's important. It's now important in many firms in Europe. We've gone through many of it in the US, but it always seems to trip people up when you're doing that. And then culture. I mean, in the early days, it was really a bunch of guys doing deals and they often had their own books. And I'm sorry to say, it was all guys, and they all kind of looked the same and went to the same school, which thank goodness that's changing. But they weren't really thinking about building a firm and building a culture that people would actually want to work there. And I'll just tell you a little bit of story about top tier. We were very fortunate. We spun out of a larger organization called Paul Capital. Actually, they had an office here in London as well. And we were fortunate in that we got connected with a gentleman. He was actually doing work for the Bank of Ireland, which we're a friend of ours. And his wife was working for Google, and she got called back to what I always fondly called a mothership. So they had to go to San Francisco. Not a bad thing. He's still there.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, I think you really want to, I mean, you could be a one-off fund and make a lot of money and maybe make a lot of money for your investors, but most institutions are looking for franchises. They're looking for the ability to continue to invest with a firm. And that, I think, really has to do with are you building a firm to last for the future? And what that really means is to outlast yourself as well. And two pieces of this that has become really important over the years in some ways because we had some bad behavior in our business, which most of you are probably familiar with, is the culture and how you think about the culture and then how you think about the partnership dynamics. And the partnership dynamics are often about economics, but how you, as you set it up, you think about partners stepping up what that means economically, what that means responsibility, and then stepping down and passing the baton. So the best firms really think about that a lot earlier than they need to and maybe even at the beginning. And I wrote a paper. It's on our blog on our website.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I mean, I think we look at it the same way you just said. I think the industry standard is 1%, so you want somebody at least be doing 1%. And there are financial institutions, some of which are sponsoring this conference that offer subscription lines and different things like that to help, you know, even with a GP, and some will offer like maybe an individual line of credit on that as well. But you want to see at least 1%. But when somebody has made a ton of money and they're not putting it back into their fund,”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Like the American waterfall, and I said, I know, neither do I. So the European Waterfall, what that means is you're getting all your fees and everything back before they take care. And part of it is, that seems fair. But the real part of it is there's this dirty little thing called a clawback, you know, because if you take some carry and the world falls apart, you as the GP might have to send that back. And if you've already bought a house and a boat and whatever else you did or sent your kids to school, which really you can't even sell, I guess your kids maybe. I don't advise that. I really don't. I'm sorry.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“The million dollar salary, which is in some ways where a lot of this world has gotten to. And so for fees, we're okay with it, but it's about fund size and fun numbers. So how many different funds are generating fees? For Carrie, I think you have to start at 20%. That is the base when you're getting started. And to have some type of premium carry after a return hurdle is okay, but really that return hurdle should be 3x, you know, not 2x because you kind of have to deliver a 2x and having a 3x. I mean, maybe 2 and a half, but a 3x. And then the question is it a full catch-up, which means are you getting that premium carry-on everything or just what's over that 3x? You know, those can be debatable. But I think the most important part of the carry calculation ends up being whether it's what is called a European waterfall, which is cool because actually the Europeans really press that. So thank you very much because somebody then said we don't.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“So VC is not a two in 20 world. PE is, a lot of VC is in it. And certainly when I say that, I really mean the top players. I mean, they have premium carry, and we are fortunate enough to have a portfolio of a lot of that. So the question is, when should somebody be able to get some type of premium fees and premium carry? I'll start with the fees first. So this is $2 and $20. If you're raising a very small venture capital fund, having fees at two and a half percent is reasonable. I mean, you're building a team, you're building a platform. I mean, that would not be egregious, right? If you're raising your seventh and now your billion dollar venture capital fund and you're still at two and a half percent and you're getting a fee on fee and you're not really adding to the team or you're not building out a platform because obviously the investors, the LPs want people to be in this for the carry. That's the ups. That's really what you're working for, not to be walking around with.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“People have been very good at continuing to keep in front of us, and they are the ones that we've ended up committing to because they're doing things, you know, they said they're going to do something, they're giving us more information, and so they understand that process. But I wouldn't read into it. It's not like an entrepreneur, not like that.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“My question to you is when you say email back, have you emailed them and they have an email back or are you expecting an email just after a meeting? The only reason why I say that is I had a GP recently who was an entrepreneur. There's tons of entrepreneurs turn GP half of you in the room are probably that. And he was trying to market his fund to some institutional investors like us. And he said, well, they didn't give me a term sheet. And I thought, we don't work that bad. We don't give term sheets. That's not the way we do it, you know? I spent some time, and I think he understands now. But it was just the funniest thing. I thought, oh no, they wouldn't do that. Somebody wouldn't do that. But it depends. If you say, you know, here's the data room and somebody says, well, you know, we would generally answer back. Thank you very much. We'll dig in and we'll get back to you. So then if we're not back to them in three weeks, either we have a stack, maybe it didn't get to the top of the stack, but it's an art how you continue to maintain that relationship without pestering someone, but to stay in front of them. And it is truly an art because a lot of times it's just that there's so many inbounds. But some of these...”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“What way back in the day it was thought of as a bad thing even for an LP to sell a position in a fund and certainly for an entrepreneur to be selling shares of their company. I mean, that was an absolute no-no, and it really never happened. Now it's kind of par for the course. The early founders needed to get a little bit of liquidity, and so there are secondary transactions. We participate in that. We actually have a very active direct into company secondary activity. We buy LP positions, we'll buy company positions. And so I do think the seed managers need to figure out how to do that as well. You know, some of them will sell a strip of their portfolio, so sell a little piece of each company to a secondary buyer. And there's tons of secondary buyers, and they're global. There's a number in Europe, plenty in the US that will do that. So I would agree with that. I would absolutely agree with Semel.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“This is one moment where I will agree with my good buddy, Chris Dubos. It is, you know, we call it the DPI. It's very important to show the ability to return capital back to the investors. So for some small seed funds, that might be what we call selling up the food chain, getting some liquidity through a secondary transaction, maybe not selling your whole position in a company, but certainly showing the ability to get capital back. And it is really important. And as I said, for us, even after the global financial crisis, we now think about that even in our fund of funds. We use secondaries. We had two fund of funds that didn't even have a J curve. I mean, think about it, venture capital-only fund of funds, no J-curve.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Who says that? I think certain LPs will be receptive to it and certain ones won't. And I think the ones that will you definitely should because it is a long-term business and you do want to track them. And I can tell stories about tracking people over time and then investing because they came to us. They were too early. We wanted to build relationship whatever it is. And then over time we did flip them. And I know there's funny stories about, you know, you came in at Fun Six, finally. I mean, you hear these things. And, you know, sometimes that's what it takes.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Fun, but you know, I have 12 put away because when you come back with your next fund, unless you totally blow it apart, I'm not going to really know. So I'm giving you the benefit of the doubt. And that is really the LP mentality. It's a lot of re-ups. And as it should be, for us, because of the relationship and the long-term nature of that, and also it's great for the GPs too, because you can generally have a base of investors that you can kind of count on. Of course, unless they change strategy or unless you mess up.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“The room have been in a meeting like this, you are lucky, where that you come in and you do a pitch in the LP says, hallelujah, I've been looking just for what you're offering, right? I mean, that's not the way they work. We don't work that way. It's not check the box we need this. So it's a long process to get to know you process. REAPs are a different story. Now, what I always tell people is all things being equal, the re-up will win. Never are all things equal, though, right? Because there's so many little subtleties to, you know, whether it's the qualitative side or the quantitative side. But as a GP, you should really think about your LPs obviously being your most precious platform, and they're the ones that likely will continue to support you. And I know some investors, let's say their average commitment is 20 million. That's because that's kind of what ours is in our main kind of U.S.-based fund. Some investors might say, okay, I'm going to do this either as a first-time fund or first-time relationship. I'll do eight in this.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“It's very different. And I was thinking about this actually somebody asked me this last night, about the time period from beginning to investment and what that takes. And then the question is, do you know the person? Is it a spin out like you and your partner? We know you, versus somebody who we really don't know very well. So I'm going to talk about the latter. In the case, the most recent one I did, which I was probably a couple years ago to be honest, it was, I think exactly 13 months from the day our partners first met them. And of course they're soft marketing and first-time funds. I mean, often it's 18 to 24 months and you just have to expect that. I mean, that is very usual. And so we met them in February and we ended up investing in March of the following year. It depends on the interaction and the knowledge. And it's very unusual for an LP. And if any of you have been in a meeting like this, any of the GPs.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“The numbers would tell you all day long with your eyes closed to do it, but there's other things going on, and it's the qualitative side, it's the team, it's the maybe team dynamics, it's the strategy, it's what you think about the future because one of the things we're doing is what we call blind pool investing. Generally, you are committing to a fund and there's nothing in it. And so you're looking at history, you're looking at track, that's why the people part is so important.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll say two things about that. One is that while we might invest in first time funds, we won't invest in first-time investors. So there must be a track. And for me, it's kind of like the starting point. You know, you have to show us that you can make a return for institutional investors or for investors. Sometimes it might be your own money, but generally it's some form of institutional investors. So that's always very important. And you want to see net, you want to understand what it is, what's included, what's excluded, but it really is important, but there's a quantitative piece of what we do, and there's a qualitative piece. I mean, it's the same way if you're a GP. And it could be, and we've done this, it could be that we're evaluating and doing our compare and contrast, as we call it. And there might be a group that really has, what are the best performers in our portfolio, and we don't re-up.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“I always try to figure out who they are and why they're different or uniquely qualified to do this. So I'm always trying to put things in context. So that's probably where I really drill down to really understand who the people are and what they're trying to do. So maybe people's strategy. The thing about performance is you need to have it. You need to have net, you need to have full track. You know, people need to understand what that is. But in a first meeting, which is obviously going to be different than a second meeting. So first meeting, it's more context, who are you? What are you doing? Why is it different? Second meeting is generally drilling a little bit further into companies because you probably have a track record of some sort.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, if anybody in this room has ever tried to pitch to me, you know the answer here I cannot go through a pitch deck. I just don't have, I don't have the capacity. I think I'm ADD. I don't know what it is. So I like to have a conversation now. I want you to point me to slides. I want to know the context. I want to try to understand certain things, but it's so hard to just go slide by slide. And I also have to pitch to potential LPs given where we sit in the market. And I'm the same way even when I'm pitching. I can kind of go through the introduction a little bit and then I basically say, what do we want to drill down on? What do we want to focus on? What does this look like? Because to hear just the monotone or whatever it sounds like, the monotonous going through a pitch tech, it is hard. However, that's me. I think there are some places where they do want you to go through the pitch deck. And I will tell you, if you are now in the finalist presentation and you're presenting to a board or something like that, you probably are going through your slides.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“It's changed obviously dramatically from a very small cottage industry that was really Silicon Valley in Boston, so it was really U.S.-based. And I would say the biggest change that we see today is really the globalization. And sitting in this room, you know, all of you are really taking part in that in a good example of that. And we now have an office here in London, you might know. I'm actually here, so I'm living here as we think about what venture capital looks like, what technological innovation looks like. And through time, venture capital has been the finance engine for a lot of that technological innovation. And because it's happening everywhere, now it's all global.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, we're an institutional investor, and a lot of the people that invest in us were a fund of fund, so our investors are generally institutional investors, and they're kind of used to capital calls. There is this notion of just-in-time capital calls, and what people are using now is really subscription finance, where you're actually borrowing a little bit to help smooth those capital calls as well. But generally, there's a whole back office that's dealing with those cash flows that's absolutely separate from the people that are doing the investing. So they often don't even know until they get the quarterly numbers what the DPI and the TVPI and stuff like that is. It's different, obviously, if you're talking about family offices and high net worth. I mean, that cash is coming right from their checking account at some level, so it's a different animal.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“At the time of the global financial crisis, people really didn't have cash coming back in their portfolios, and it was really problematic. So we really added secondaries and co-investments to our portfolio construction so that we could really reduce and shorten the J-curve for institutional investors. So those are kind of two things we did.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, you know, I've been through two buses and I say I have one more in me, so that's it. I can do one more and then I'm out. And I can talk about each one because they were very different. The first one was what we call the dot-com bus. And really some of the learnings we came out of that with was two things. One is that you really needed time diversification in your investments. Used to be three to four years that people would invest a fund. It moved to something like 12 to 18 months. And then there wasn't a lot of sector diversification either. Some people just powed into just telecom companies and such. And that did not end well. So that was really the bubble. And of course there were high valuations and there were no revenues and everything else that existed. But I think from an LP point of view it was about time diversification impossibly sector diversification as well. After the global financial crisis we also changed a little bit the way we invested and that was really about J-curve mitigation and cash flows.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source
“I would love to tell you that it was a very meticulously thought out career path, but in reality this is a few decades ago. I was actually working at the Federal Reserve Bank in San Francisco and I was trying to move to Portland, Oregon. I have to admit also I was following a boyfriend up to Portland, Oregon. So you go into a recruiter in San Francisco and you say, hey, I know you have an office in Portland. Is there any jobs up there? And they said, we think we have a perfect job for you right here in San Francisco at a fund of funds. I'm like, what? What's venture capital? What's a fund of funds? So really the rest is history. That was at a time where I think there was four funda funds in the entire industry. So it was way early on and nobody really knew how to even spell venture capital or knew what I was doing. I told my mother that I was working for a mutual fund for non-public companies. I'm not even sure she understood that.”
2019-11-04 · The Twenty Minute VC · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · IDENTIFIED FROM THE TRANSCRIPT · source