Balderton's Rana Yared - a masterclass on building global companies out of Europe
Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets
The Dynamics of Strategic Investment vs. Venture Capital
This chapter delves into the contrasts between strategic investments made by banks and those made by venture capital firms. It discusses the importance of demonstrating returns for further funding and the complexities of aligning the interests of banks with their portfolio companies.
Welcome back to the Alt Goes Mainstream podcast.
Today’s guest is an expert in financial services and capital markets who has experience as both a strategic investor and a VC.
We welcome Rana Yared, a General Partner at Balderton, where she co-leads their Growth Fund. She came to Balderton in 2020 from across the pond, where she was a Partner at Goldman Sachs, first in the Principal Strategic Investments Group, a balance sheet investing team, and later in GS Growth, when the group became part of the GS Growth efforts that began to take in outside LP capital. At Goldman, Rana oversaw investments in Financial Technology and Enterprise Technology as well as the commercialization of Goldman’s technology assets in both NYC and London. She represented Goldman on the boards of Tradeweb, NAV, Vestwell, New York Shipping Exchange, and Swapclear @ LCH. She currently serves on the board of Tradeweb in an independent capacity.
Coming off of a fundraise of $1.3B in new capital across early and growth stage funds at Balderton, Rana and I discussed what LPs were interested in and why Europe is a compelling investment ecosystem. We had a fascinating discussion about:
- Revolutionary and evolutionary innovations in financial services and private markets, including the likes of iCapital, Tradeweb, Revolut.
- Why global tech companies can be built in Europe, with Revolut, a Balderton portfolio company, as an example.
- Why London and Europe are compelling fintech and financial services ecosystems.
- How LPs should look at the European investment opportunity.
- Differences and benefits / drawbacks of being a strategic / permanent capital investor versus being an independent VC fund.
- The importance of being a risk manager in venture.
Thanks Rana for coming on the show to share your wisdom and views on Europe, venture, and private markets. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Ultimus Sponsor Message
01:59 Introducing Balderton Capital Partner, Rana Yared
04:16 Rana's Journey from Goldman Sachs to Balderton
04:25 Transition from Investment Banking to VC
06:26 Insights on Financial Services and Market Structure
06:37 Investing in Market Structure
09:05 Disruptive vs. Evolutionary Innovations in Fintech
12:53 Partnering with Incumbents
14:31 The Importance of Durability and Product Velocity
18:11 Strategic Investing vs. Venture Capital
21:21 Investing in the European Ecosystem
27:06 The Exciting Potential of Revolut and European FinTech
27:21 FinTech Giants in Germany
27:54 European Companies' International Advantage
28:55 Investor's Perspective on European Expansion
29:48 The Role of Venture Capital in Europe
29:22 Challenges and Strategies for European Investors
30:20 The Importance of Local Presence
30:55 The Future of European Ecosystems
31:28 US VCs Entering Europe
32:15 Bridging the Talent Gap
34:02 Mentorship and Expertise
35:52 The Role of LPs and European Investment Opportunities
37:23 Challenges for European Pensions and Endowments
38:49 Innovations in Fund Structures
41:27 The Impact of Governmental Participation in Venture
42:22 Exciting Opportunities in European Venture
43:10 FinTech's Massive Potential
43:59 Europe's Unique Financial Services Advantages
44:53 Geopolitical Concerns for Investors
45:51 Lessons from War Studies Applied to Investing
47:11 The Future of Retirement Investments in Europe
49:13 The Importance of Patience in Investing
The AI-powered Podcast Player
