The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified 491. How AI Reshapes LP Allocation Strategy, The Convergence of Venture and Buyout, and Permanent Shifts to Liquidity (Lara Banks)
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Sep 8, 2025 Lara Banks, a leader at Makena Capital Management, dives into the evolving landscape of venture capital and private equity. She highlights how AI is reshaping LP allocation strategies and the convergence between venture and buyout firms. Lara discusses the significance of secondary markets as a new liquidity force and the increasing importance of strategic relationships in underwriting investments. She emphasizes the need for adaptability and community connection in navigating today's dynamic investment environments.
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Perpetual Evergreen Private Allocation
- McKenna offers perpetual, cash-flow-positive private allocations that recycle distributions into new investments.
- This structure lets investors add private exposure without experiencing a classic J-curve.
Underwrite For Multi-Fund Partnerships
- Underwrite managers for long-term partnerships, not single funds, focusing on team and opportunity set.
- Prefer co-investments for one-off or very early relationships instead of early-stage fund bets.
Experience Trumps Raw Track Records
- In venture, quality of network and founder relationships matter more than raw performance metrics.
- Experience can substitute for an established venture track record when assessing managers.
