Elizabeth "Beezer" Clarkson, Partner at Sapphire Partners, discusses how their new partnership with CalSTRS will allow them to expand their ability to support the next generation of VC managers – all while continuing to focus on investing in the established.

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(0:00) Introduction to Beezer Clarkson and discussion on fund graduation rates (0:25) Beezer Clarkson on the CalSTRS emerging managers program and its $1.4 billion initiative (1:59) Emerging vs. Established managers: Definitions and dynamics (4:01) The performance and significance of emerging managers in the industry (6:05) Challenges for new LPs and best practices in LP portfolio construction (10:17) Red flags and sustainable alpha in emerging managers' transition to established status (16:27) Sponsor: Tactyc (17:06) Evaluating emerging managers: Criteria and the solo GP phenomenon (24:03) Trends in spinouts, consolidation, and LP-fund manager relationships (28:05) CalSTRS strategy and the value adds LPs bring to fund managers (32:46) Systematic biases and current debates among LPs (36:04) The importance of exits and openness to alternative investment models (40:00) Key factors in LP evaluation of emerging managers and the role of listening (43:43) Transparency in the LP ecosystem and the evolving role of LPs (46:44) Zero sum thinking and streamlined agreements for emerging managers (51:57) Sapphire's approach to current industry challenges and lessons from past downturns (54:42) Episode conclusion and special RFP to the community