VC10X - Investing, Asset Management, Venture Capital, Private Equity, Family Office LP10X - How to build the next Sequoia? - Hunter Somerville, Partner, StepStone Group ($150BN AUM)
Hunter Somerville is a Partner at StepStone Group, an asset management firm with over $150BN+ in assets under management. Hunter focuses on venture capital and growth equity investments which includes fund investments, directs, and secondaries.
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StepStone Group - https://www.stepstonegroup.com/
Hunter Somerville on LinkedIn - https://www.linkedin.com/in/hunter-somerville-2a24117/
In this episode we talk about -
- The different strategies they invest in at StepStone private equity & VC team
- Key things you look for in fund managers
- The different risks they are undertaking when backing a fund
- Common mistakes new GPs make
- How big is the opportunity in the secondary market?
- His advice to GPs aspiring to build the Sequoia of tomorrow
& lots more
Timestamps:
(00:00) Introduction
(05:23) Hunter's background and career journey
(06:26) StepStone's investment strategies
(09:04) Key characteristics and criteria for primary fund investments
(11:31) Managing DPI and liquidity in early-stage venture investments
(14:09) Evaluating secondary investments and portfolio strategies
(16:27) Risks associated with fund investments
(20:10) Building relevance and value for venture capital funds
(23:03) Common mistakes made by new General Partners (GPs)
(24:45) StepStone's approach to growth stage direct investing
(27:08) Comparing risk and return across different investment strategies
(30:19) The secondary market opportunity and its growth
(34:17) Liquidity dynamics in venture capital investments
(36:10) Advice for GPs aspiring to build the next Sequoia or A16Z
(37:46) Emerging trends and exciting investment areas in venture capital
(40:28) Rapid fire round of questions about StepStone's investment approach
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