E277:Why the Best GPs Refuse to Raise More Capital

Jan 7, 2026

In this engaging conversation, Deepak Sindwani, Co-Founder and Managing Partner of Wavecrest Growth Partners, shares his insights on growth equity. He explains why maintaining fund size discipline is crucial, even against strong demand. Deepak discusses the competitive landscape above $50M checks and introduces his 'treasure hunting' model to find hidden growth companies. He emphasizes the importance of founder partnerships, a supportive culture, and how adversity shapes better investors. Discover the values driving a successful growth equity firm!

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ADVICE

Hold Fund Size To Strategy

Stay strictly within your stated strategy when raising capital to preserve credibility and returns.
Refuse upsizes that force larger check sizes or a different investment approach.

INSIGHT

The $50M Break Point

Growth equity becomes far more competitive once average equity checks exceed ~$50M.
That break point meaningfully constrains fund construction and deal sourcing tactics.

ADVICE

Invest Fees In Growth Operations

Use management fees to build a dedicated growth-ops team that helps portfolio companies scale.
Invest in repeatable operational resources to increase deal win-rate and founder value.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

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.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Deepak Sindwani:

LinkedIn:https://www.linkedin.com/in/dsindwani/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

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