LP investment strategies, IRR focus, and more with Berkocorp's Joshua Berkowitz | E1882

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Jan 17, 2024

Joshua Berkowitz, Managing Principal at Berkocorp, shares insights on LP investment strategies and the role of family offices in venture capital. He discusses the allure of venture capital as a promising asset class driven by the potential for higher returns. Berkowitz also emphasizes the importance of evaluating fund managers and the nuanced processes in fund management and fundraising. Listeners can expect to learn about the significance of networking, mentorship, and the entrepreneurial spirit that drives impactful investments.

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INSIGHT

Family Office Diversification

Family offices are often created after selling a company or compounding wealth in real estate.
They diversify into various asset classes like public equities, private equity, venture capital, bonds, private credit, and commodities to reduce risk.

INSIGHT

Venture Capital's High Returns

Venture capital offers the highest average returns and the greatest return dispersion among asset classes.
Top venture funds significantly outperform average ones, creating substantial wealth-building opportunities.

INSIGHT

Entrepreneurial Family Offices

Many family offices are entrepreneurial and seek investments aligned with their values.
Venture capital allows them to support innovation and potentially shape the future.

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Today’s show:

Joshua Berkowitz joins Jason discuss the critical role of LPs in venture capital, his family office's diversification into the field (4:37), strategies for evaluating and selecting fund managers (14:26), and the intricacies of fund management and fundraising (30:41).

Timestamps:

(0:00) Berkocorp’s Joshua Berkowitz joins Jason

(4:37) Why family offices diversify into venture capital - higher returns, high dispersion of returns, and the entrepreneurial aspect

(9:32) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://Squarespace.com/twist

(10:59) Evaluating emerging managers - looking for exceptional strategies and execution

(14:26) Decision making processes at venture firms - consensus vs individual decision-making.

(19:56) What a VC fund has to do to be successful

(25:48) Northwest Registered Agent - Get a 60% discount on your next LLC at http://northwestregisteredagent.com/twist

(26:41) Pros and cons of GPs being very vocal/political on social media

(30:41) Quick disqualifications when evaluating new VC funds and challenges with GP "tourism"

(34:59) LinkedIn Marketing - Get a $100 LinkedIn ad credit at http://linkedin.com/angelpod

(36:20) What kills companies - "likely winners" vs "definitive winners"

(58:42) Clarity in the process for GPs raising funds from LPs

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Follow at:

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