Elizabeth "Beezer" Clarkson, Partner at Sapphire Partners, discusses how their new partnership with CalSTRS will allow them to expand their ability to support the next generation of VC managers – all while continuing to focus on investing in the established. We’re proudly sponsored by Tactyc, visit tactyc.io if you’re ready to level up your venture fund.

(0:00) Episode Preview

(0:57) The Importance of LP Voices and Sapphire’s Partnership with CalSTRS

(2:15) Why Investing in Emerging Managers Have Such a Unique Dynamic

(4:09) The Role Emerging Managers Play in the Construction of a Compelling Portfolio

(6:16) Thousands of Emerging Managers vs Forty Established Funds

(7:30) Does Excess Capacity Translate to Adverse Selection?

(8:17) “LPs are like Snowflakes and They’re all Different.”

(10:49) Common Reasons Why LPs Don’t Re-up

(13:48) What Makes for a Great Manager?

(16:27) Episode Sponsor: Tactyc

(17:34) What Sapphire Looks for When Evaluating a New Manager

(19:00) Who Wins: Generalist v. Specialist

(21:57) Will Solo GPs be able to Survive in this Market?

(24:38) Beezer’s Predictions on Spinouts

(26:34) The Bias and Rationale Behind Institutional LPs Desire to Re-up in Existing Managers

(28:14) The New CalSTRS Program’s Investment Rubric on Checksize, Fund Size, Return Profile and Audit Requirements

(30:37) How LPs Can Bring Value to a Fund

(34:31) Why LPs are All Examining Their Portfolios

(36:42) Should GPs Focus on DPI or TVPI?

(39:01) Why Venture Needs More Innovation

(40:19) How LPs Diligence Managers

(44:15) The Importance of Transparency within the LP Ecosystem

(51:57) What Sapphire Invests In

(53:26) Lessons Learned from Previous Downturns