Secondaries, Continuation Vehicles, and Sidecar Funds: Private Equity with HarbourVest’s Scott Voss
Run the Numbers
Long-Term Partnerships and Continuation Vehicles in Private Equity
This chapter explores the critical role of personal evaluations in the due diligence process of private equity investments. It contrasts traditional transactional methods with a long-term partnership approach and introduces continuation vehicles as a new option for liquidity in the secondary market.
Scott Voss, Managing Director of Boston’s preeminent private markets firm HarbourVest, joins CJ for an in-depth exploration of secondaries, continuation vehicles, and sidecar funds. Scott starts by outlining HarbourVest's value proposition and investment strategies, covering primary investments, secondaries, and direct co-investments while underscoring the importance of private market access for diversified portfolios. He shares the framework HarbourVest uses to identify and support emerging fund managers ahead of their success, and the process of due diligence and evaluation. Scott sheds light on how continuation vehicles work in the private equity space and other trends or innovations he has identified. The discussion also covers the complexities of succession planning within private equity firms, the evolving landscape of global entrepreneurship and venture capital internationally, and Scott’s views on AI.
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TIMESTAMPS:
(00:00) Preview and Intro
(01:46) Sponsor – Operators Guild | Maxio
(05:02) HarbourVest’s Value Proposition
(09:39) Accessing the Private Market
(11:28) Investing in Early Fund Managers Ahead of Their Success
(13:13) The Process of Due Diligence and Evaluation
(14:20) Identifying Investments Versus the Ability to Access the Right People
(16:16) Sponsor – Leapfin | Mercury | NetSuite
(19:35) How Continuation Vehicles Work in the Private Equity Space
(23:27) Quality Versus Timing When It Comes to Continuation Vehicles
(24:04) Other Trends or Innovations in the Space
(26:19) Sidecar Funds
(28:07) Succession Planning in VC and PE Firms
(32:17) GP Stake Funds
(34:28) How Succession Planning Is Likely to Evolve over Time
(35:13) Private Equity in the Capital Markets and the State of Global Entrepreneurship
(37:25) Sequestering International Versus Domestic Investments
(40:31) The Potential Emergence of China as a Sci-Fi Innovation Hub
(42:48) Scott’s Take on AI
(44:09) Career Insight: Luck Versus Talent
(47:35) Advice About Hobbies
(50:26) Wrap
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