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Swimming with Allocators

The Overlooked Alpha in This Next Decade of Venture with Claude Grunitzky and Adrienne Rees of The Equity Alliance

Nov 29, 2023
Dive into the origins of a unique fund focused on uplifting underrepresented voices in venture capital. Discover the shift towards cash management and the impending opportunities amid market consolidation. The hosts discuss the importance of authenticity in fundraising and the hurdles diverse managers face. Learn how emerging managers can leverage their backgrounds to foster trust and promote success. Exciting insights on the future of venture capital reveal potential growth and diversification strategies that promise a more inclusive industry.
35:24

Podcast summary created with Snipd AI

Quick takeaways

  • The Equity Alliance is pioneering a fund of funds model that focuses on investing in diverse emerging managers to unlock overlooked opportunities for superior returns.
  • A reemphasis on cash flow and fundamental business principles is shaping the future of venture capital, necessitating adaptability from Limited Partners amid market consolidation.

Deep dives

The Origin Story of the Equity Alliance

The Equity Alliance was founded out of a desire to address inequities in venture capital, specifically for women and people of color. Visionary Dick Parsons initiated the idea during a conversation with Kenny Lehrer, leading to the creation of a fund of funds model aimed at supporting underrepresented managers. This was motivated by increasing awareness of disparities in the financial industry, especially following social justice movements upon the death of George Floyd. The founders aimed to approach this evolving market with a cautious mindset, initially raising $25 million to validate their strategy and make a meaningful impact.

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