NC Finance Info Flashcards
How many funds representing how much capital has been deployed by emerging managers over the last decade?
Since 2009, emerging managers have launched nearly 6,000 alternatives vehicles in the U.S., representing over $1 trillion of capital.
Name three good reasons to consider Nucleation Capital from the point of view of a consultant.
+ Diverse managers often deploy novel, forward-looking strategies that have been ignored or neglected by traditional managers or due reasons like complexity.
+ This is providing access to an entirely new asset class and there is a need to break through the rigidity of how we approach and value the relative importance of asset classes.
+ Flexibility is key to hedging risk, as the next generation needs are not one-size-fits all.
Name three good reasons to consider NC from the point of view of an LP.
+ It’s important to identify the ‘blank space’ in a portfolio, NC is like an ETF for Advanced Nuclear, which otherwise is missing.
+ Yes, Nuclear is high risk, but there may be a different risk profile associated with taking up an opportunity that enables the planet to survive, thus reducing the overall risk to the entire portfolio vs. one that is simply a bet.
+ NC is majority women owned and is an emerging fund, which have been shown to be over-performers, relative to the median.
Name and describe the group that advises CALPERS on its Venture Capital/Alternative investments.
GCM Grosvenor — a global alternative asset management firm with approximately $50 billion in assets under management in hedge fund strategies, private equity, infrastructure, real estate, and multi-asset class solutions. It is one of the oldestm largest, most diversified independent alternative asset management firms worldwide, operating since 1971. GCM is headquartered in Chicago, with offices in New York, Los Angeles, London, Tokyo, Hong Kong and Seoul, serving a global client base of institutional and high net worth investors.
According to Grosvenor, what are the characteristics of a GM group that can move from a fund to a platform?
+ Verifiable track record of prior investments
+ Ability to scale the platform appropriately, without growing too quickly (or too slowly)
+ An institutional-quality back-office and corporate structure
+ Fundraising ability and a broad range of LP relationships
What are “Treacherous B’s”
It is the problem that there are fewer venture groups focused on B-round investments.
