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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