David Sawyer, Chief Operating Officer & Managing Partner at Legacy Knight : Multi-Family Office sits down with David Weisburd to discuss the top mistakes investors make in GP stakes, why middle-market GP stakes could be a game-changer for investors, and how GP stakes outperform traditional investments in 2024.
(0:00) Introduction to Legacy Knight and competitive landscape
(0:24) Overview and explanation of GP Stakes investing and Legacy Knight's dual platform
(1:04) Flexibility in advising families and limitations of big banks
(2:39) Drivers and succession planning in GP stakes sales
(5:26) Management fee revenue and deal quality in GP Stakes
(7:38) Underwriting LP re-up rates and diligence processes
(10:01) Differences between GP Stakes and other fund investments
(11:11) Revenue streams and financial targets in GP Stakes
(17:03) Downside protection strategies and base case scenarios
(18:38) LP preferences and role of investment bankers in GP stakes
(19:21) Sponsor: Carta
(20:07) Common mistakes and valuation metrics in GP stakes
(23:23) Trends and market differences in GP stake sales
(26:11) Trends in preferred equity and value addition by GP stakes funds
(28:31) Fundraising assistance and due diligence in GP stakes
(31:01) Banks' involvement and market correlation errors in GP stakes
(32:31) Fragmentation and opportunities in the GP stakes market
(35:18) Exit strategies and market performance in GP stakes
(36:28) GP stakes across asset classes and infrastructure investments
(38:42) Advantages of GP stakes and market innovation
(40:08) Portfolio construction evolution in GP stakes funds
(41:18) Deal size relationship with AUM
(42:27) Final thoughts on the GP stakes market
(42:58) Podcast closing and sponsorship information
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