What Great Questions to LP Questions Sound Like | Courtney McCrea | Superclusters | S1E5

Courtney Russell McCrea enjoys over 30 years of venture capital and private equity investment experience including 13 years of fund investing and 18 years of direct principal investing. Courtney is Co-Founder and Managing Partner of Recast Capital, a 100% women-owned platform investing in and supporting emerging managers in venture, with a focus on diverse partnerships. Prior to co-founding Recast, Courtney was a Managing Director of Weathergage Capital, a boutique fund of funds that provided its clients with access to premier venture capital, growth equity and micro-VC partnerships. Venture fund commitments included both brand name funds and emerging managers. In addition to fund investment responsibilities, Courtney led the direct co investing program at Weathergage. During her 10 year tenure at Weathergage, Courtney made commitments to 100 funds and seven direct co-investments. Prior to Weathergage, Courtney was a General Partner with Weston Presidio, a leading diversified private equity firm based in San Francisco. After 7 years at Weston Presidio, she left in 2004 and founded Silver Partners, a private equity advisory firm where she evaluated secondary and co-investment opportunities and advised consumer growth businesses. Courtney was also a Director at Sterling Stamos, where she managed investments in buyout funds, venture capital funds and hedge funds. Earlier in her career, Courtney made equity co-investments as an Assistant Vice President at PPM America. She also spent 5 years at GE Capital where she worked on private equity, senior and subordinated debt investing. Courtney has an M.B.A., with honors, from the Kellogg Graduate School of Management and a B.A. in Economics from the University of Illinois, Champaign-Urbana. She is a member of the Kauffman Fellows Class 3. Courtney is a member of the NVCA Forward Board of Directors and the Alzheimer’s Association Northern California and Nevada Board of Directors. You can find Courtney on her socials here: Twitter: https://twitter.com/courtneyrmccrea LinkedIn: https://www.linkedin.com/in/courtneymccrea/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [02:37] What of Courtney's past helped her co-found Recast Capital [04:02] Three reasons to invest in emerging managers [05:17] What does "institutional quality of emerging managers" mean? [06:52] How to diligence emerging managers [10:30] How to do reference checks on GPs [14:40] How has being a Kauffman fellow helped Courtney build Recast's Enablement and Accelerate programs [19:51] How do alumni GP stay active in Recast Capital's community [20:59] Zoom vs. in-person education for GPs [23:00] What kind of managers do Recast Capital invest in versus who ends up joining the Enablement Program versus who joins the Accelerate program [28:33] Why are the Enablement Program and Accelerate program free [30:25] Spinouts from larger funds [32:12] What are emerging manager red flags? [34:03] Should emerging managers have answers to questions on succession planning? [36:00] Challenging the 1% GP commit: How much should different archetypes of GPs commit to their own fund? [40:52] Lessons from arguments between GPs [46:30] Getting Courtney to say yes [47:46] Courtney may make some enemies with this statement! [48:54] Thank you to Alchemist Accelerator for sponsoring! [51:30] Legal disclaimer Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters