“GPs over-index on how that value-add ties into a portfolio strategy.” — Stacey Kline

Stacey Kline and Ben Gallacher are co-founders of February Capital, a fund-of-funds dedicated to providing access to the best in venture. Prior to starting February, they've each held roles as professional athletes, corporate lawyers, startup founders, emerging managers themselves, family office allocators, just to name a few.

We spend much of this episode talking about their backgrounds that led them to where they are today, but also on why Stacey and Ben spend so much time underwriting emerging managers' value-adds, as well as their controversial take on it.

You can find Stacey on her socials here:

LinkedIn: https://www.linkedin.com/in/staceykline/

You can find Ben on his socials here:

LinkedIn: https://www.linkedin.com/in/benjamingallacher/

OUTLINE:

(00:00) Intro

(04:03) Why did it take 22 months to set up fund of funds in Canada?

(07:22) Toughest moments when building February Capital

(10:12) How did Ben know he wanted to be an LP?

(12:58) How did Stacey know she wanted to be an LP?

(16:53) The doctor's advice no one expected

(18:32) Ben's first NO from Stacey

(23:06) Why is it called February Capital?

(23:58) What is the role of the LP today?

(27:59) What Ben and Stacey look for in GPs

(31:08) When does non-consensus thinking lead to portfolio divergence?

(36:28) How much portfolio overlap is fair for February?

(39:31) How large is February's portfolio?

(43:17) Picking an ecosystem vs picking an investor

(46:24) What types of GPs did Stacey change her mind on?

(47:56) Underwriting a GP's story

(49:44) Stacey's controversial take on value-adds

(53:07) Why value-adds affect sourcing

(57:10) Examples of negative value-add

(59:19) Refreshing your value add

(1:03:36) An example of when GP and founder incentives are misaligned

(1:05:12) The February Capital OS you don't see

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