Why Wavecrest capped Fund III at $450M

Why is the hardest discipline in growth equity not finding great companies but refusing to grow past the point where returns break? In this episode, I talk with Deepak Sindwani, Co-Founder and Managing Partner of Wavecrest Growth Partners, about why fund size discipline, culture, and integrity matter more than optics in building a great investment firm. Deepak explains why Wavecrest capped Fund III at $450M despite excess demand, how staying in the sub-$50M equity check range preserves alpha, and why being a true growth partner — not a financial engineer — creates better outcomes for founders and investors alike.

Highlights:

• Why Wavecrest refused to raise a larger fund despite strong demand
• The break point where growth equity becomes overly competitive
• Why consistent strategy beats chasing milestones
• The “treasure hunting” model for finding overlooked growth companies
• Why profitable, 30–50% growth companies are the sweet spot
• How direct sourcing creates better founder relationships
• Why culture and “no-asshole” policies increase expected value
• Selling capital to founders who don’t need it
• The real reasons founders take growth capital
• How adversity builds better long-term investors

Guest Bio:

Deepak Sindwani is the Co-Founder and Managing Partner of Wavecrest Growth Partners, a growth equity firm focused on profitable B2B software and technology-enabled services companies. Prior to Wavecrest, Deepak was a Partner at Bain Capital Ventures and a Principal at Comcast Ventures, where he led early- and growth-stage investments across the technology sector. He began his career in technology investment banking at Credit Suisse and later worked in product management, marketing, and business development at several technology companies, including his own startup. Deepak holds a B.S. in Electrical Engineering and Economics from the University of Pennsylvania.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (2:22) Balancing Fund Growth with Investment Strategy (3:33) Market Competitiveness and Portfolio Construction (6:12) Identifying and Investing in Growth Opportunities (9:45) The Role of Passion in Growth Equity (14:00) Building a Positive Company Culture (15:46) Challenges of Selling Capital to Self-Sufficient Companies (21:01) Wavecrest's Growth Strategies and Value Addition (25:13) Leveraging Portfolio Strengths to Win Deals (29:36) Personality Assessments in Talent Management (31:57) Deepak Sindwani's Reflections and Advice for Aspiring Investors (33:57) Bootstrapping a Fund: Strengths and Challenges (35:13) Embracing Challenges for Building Resilience (37:15) Closing remarks