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What Most Passive Investors Get Wrong (And How to Fix It) with Lance Pederson | 63
In this episode, I sit down with Lance Pederson, managing partner at Resonance Capital and founder of Passive Advantage. With over a decade of experience in fund management, Lance has reviewed thousands of private placements—and he’s not afraid to call out the most common blind spots passive investors have.
We dive deep into why most LPs aren’t asking the right questions, what separates an average sponsor from a world-class operator, and how to underwrite sponsors—not just deals. Lance also shares the framework he uses to evaluate opportunities and how to spot operational risk before writing a check. If you’re serious about investing passively, this episode is a masterclass in thinking like a capital allocator, not just a capital contributor.
Episode Highlights:
[0:00] – Lance’s path from tech entrepreneur to fund manager
[5:42] – Why most LPs don’t know how to underwrite operators
[8:18] – Operational complexity: the hidden risk no one’s talking about
[10:50] – What “sophisticated LPs” do differently from the average investor
[13:44] – Questions every LP should ask about an operator’s track record
[17:10] – The most common red flags in private placement memos
[20:22] – Why focusing on IRR is a trap—and what to look at instead
[23:38] – The difference between good marketers and good operators
[26:46] – How to build a personal investment thesis that actually works
[29:12] – The framework Lance uses to assess alignment and execution risk
[32:58] – Why asset class is less important than sponsor quality
[36:20] – Advice for LPs looking to upgrade their diligence process
5 Key Takeaways:
Most LPs evaluate deals, not operators—and that’s a costly mistake.
Operational risk is real—complexity kills execution.
You need a framework, not just gut feel, to invest well.
IRR is often the least important metric—alignment is everything.
You’re not just buying into an asset, you’re buying into a team.
Links & Resources:
Resonance Capital – https://www.resonancecap.com
Passive Advantage – https://www.passiveadvantage.com
If this episode helped level up your LP lens, take a second to follow, rate, and review the podcast. It helps us reach more investors ready to move from check writers to strategic partners.
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By Peter NeillIn this episode, I sit down with Lance Pederson, managing partner at Resonance Capital and founder of Passive Advantage. With over a decade of experience in fund management, Lance has reviewed thousands of private placements—and he’s not afraid to call out the most common blind spots passive investors have.
We dive deep into why most LPs aren’t asking the right questions, what separates an average sponsor from a world-class operator, and how to underwrite sponsors—not just deals. Lance also shares the framework he uses to evaluate opportunities and how to spot operational risk before writing a check. If you’re serious about investing passively, this episode is a masterclass in thinking like a capital allocator, not just a capital contributor.
Episode Highlights:
[0:00] – Lance’s path from tech entrepreneur to fund manager
[5:42] – Why most LPs don’t know how to underwrite operators
[8:18] – Operational complexity: the hidden risk no one’s talking about
[10:50] – What “sophisticated LPs” do differently from the average investor
[13:44] – Questions every LP should ask about an operator’s track record
[17:10] – The most common red flags in private placement memos
[20:22] – Why focusing on IRR is a trap—and what to look at instead
[23:38] – The difference between good marketers and good operators
[26:46] – How to build a personal investment thesis that actually works
[29:12] – The framework Lance uses to assess alignment and execution risk
[32:58] – Why asset class is less important than sponsor quality
[36:20] – Advice for LPs looking to upgrade their diligence process
5 Key Takeaways:
Most LPs evaluate deals, not operators—and that’s a costly mistake.
Operational risk is real—complexity kills execution.
You need a framework, not just gut feel, to invest well.
IRR is often the least important metric—alignment is everything.
You’re not just buying into an asset, you’re buying into a team.
Links & Resources:
Resonance Capital – https://www.resonancecap.com
Passive Advantage – https://www.passiveadvantage.com
If this episode helped level up your LP lens, take a second to follow, rate, and review the podcast. It helps us reach more investors ready to move from check writers to strategic partners.