10X Capital Podcast

Jamie Biddle (Founding Partner and CEO) & Steve Kim (Partner, Investment Strategy and Risk Management) of Verdis Investment Management, sit down with David Weisburd to discuss how Verdis has managed to invest into 41 unicorns by indexing early-stage venture capital funds, how they came up with the venture index thesis, and the practical considerations of executing on their venture index strategy. They also discuss the purpose of venture in a diversified portfolio, the benefits of QSBS for taxable investors, and avoiding adverse selection in venture capital. (0:00) Introduction to Virtus and venture capital investment strategies (2:05) Family office investment strategy and tax considerations (5:02) Indexing early-stage venture capital and balancing beta and alpha (7:22) Key factors in venture capital returns and portfolio construction (9:56) Impact of QSBS and performance metrics on venture strategy (12:49) Managing family office investments and unicorn investments (16:02) Power laws in venture capital, crypto, and sector vs. generalist funds (19:22) Venture strategy execution, operational focus, and network access (21:10) Origin, methodology, and barriers to replicating Virtus's venture thesis (23:12) Operational challenges in venture investing and CFO's role (24:22) Shifting focus in venture investing and importance of data transparency (26:52) Constraints and the importance of patience in venture strategy (28:40) Evaluating TVPI as a predictor of DPI

Michael Miller, CIO at Crewcial Partners, sits down with David Weisburd to discuss how nonprofit institutions invest, how they think about portfolio construction, and how they manage liquidity. (0:00) Introduction to Michael Miller and Crucial Partners (1:57) Investment Target Allocation Overview (3:41) Nonprofit Investment Strategies and Distribution Requirements (6:42) Private vs. Public Equity: Balancing Long-term and Short-term Investments (9:08) Asset Management Approach: Discretionary vs. Nondiscretionary (10:35) GP/LP Relationships and the Importance of Transparency (12:25) Embracing Inefficiency and Capacity-Constrained Managers (14:47) The Role of Sticky Capital in Asset Management (16:19) Leveraging Client Base to Access Top Managers (17:27) Understanding the True Priorities of LPs (19:01) Venture Capital in the Face of Political Activism and Social Media (20:50) Strategies for Building a Venture Portfolio in the Current Year (22:25) The Impact of Interest Rates on New Venture Investments (24:44) Nonprofits: Balancing Mission with Investment Returns (25:34) Investment Committee Dynamics and Composition (27:20) Addressing Incentive Issues within Nonprofit Committees (28:15) Fund Concentration and Client Allocation Strategies (30:07) Evaluating Spinouts and Early Investment Opportunities (33:45) The Concept of Aspirational Investing (34:45) Avoiding Conformity in Investment Decisions (36:03) Sticking to Core Principles for Long-term Success (36:28) Conclusion and Future Episode Teaser (36:40) Sponsor: Acme Investments

Mikhail Blancovitch, Co-Founder of Unicorn Strategic Capital, sits down with David Weisburd to discuss strategies for raising capital from different types of LPs, how fund managers can craft a compelling story that resonates with LPs, and sources of growth for alternative asset AUM. (0:00) Introduction to Raising Capital and LP Engagement (0:26) Diversifying Portfolios and the Role of Emerging Managers (1:26) Insights into Unicorn Strategic Capital's Approach (2:29) The Increasing Focus on Emerging Managers (3:59) Analyzing Beta vs. Alpha in Institutional Investing (6:39) Innovation Trends Among Institutional Investors (8:07) Exploring the Advantages of Being a Second Mover (9:35) The Impact of Initial Fundraising Figures (12:53) Investor Follow-Up Strategies (14:23) Adapting to LP Meetings in the Post-COVID Era (17:21) Effective Storytelling Techniques for Engaging LPs (20:14) Tailoring Pitch Decks for Different Audiences (21:29) Exploring Opportunities in the Intermediary Space (23:23) Demographic Shifts in Wealth and Impact on Investments (24:19) Selecting Clients: Criteria and Strategies (25:31) Managing Multiple Fund Vintages (26:04) Mastering the Pitching Process (26:19) Closing Remarks and Acknowledgments

Justin Dyer, Chief Investment Officer of AWM Capital, sits down with David Weisburd to discuss how AWM manages investments for professional athletes. Justin details AWM’s adherence to liability-driven portfolio construction, how it invests in venture and unique considerations when investing capital for athletes. (0:00) Introduction to Justin Dyer and AWM Capital (1:17) AWM Capital's approach to serving athletes (2:25) Integrating Maslow's hierarchy into portfolio management (5:45) The role of venture capital in AWM's strategy (7:07) Accessing venture through a fund of funds (8:20) Regional focus in venture investments (9:50) Investment strategy deliberations at AWM (13:21) Sponsor: Message and Support Call (17:09) Tailoring portfolios to individual client needs (17:21) Evaluating venture managers and their strategies (20:52) Disruption potential in venture capital (21:48) Early career reflections and venture insights (23:03) Balancing concentration with diversification (24:50) AWM's money philosophy and client wealth impact (27:19) Conclusion and invitation to subscribe

Michael Ashley Schulman, Chief Investment Officer at Running Point Capital, sits down with David Weisburd to discuss Michael’s views on venture capital, manager selection across private asset classes, and risks/benefits of investing in spinout managers. (0:00) Venture as part investment, part psychology (0:18) Early stage venture and QSBS tax benefits (1:37) Running Point Capital Advisors and private/public allocation (3:03) Family offices vs. institutional investors (4:16) Evaluating investments: IRR vs MOIC (6:08) Managing liquidity and capital calls with software (7:00) Strategies for accessing top venture capital GPs (9:26) Due diligence and GP decision-making processes (14:16) Investing in spinouts: benefits and risks (17:36) CIO's prior experiences and final thoughts on Running Point Capital (20:11) Tax strategies and timing in M&A deals

Fernando Saiz, Co-Founder of Azet Capital, sits down with David Weisburd to discuss Azet Capital’s fund of funds strategy in venture capital. Fernando shares his diligence process for selecting venture funds, what differentiates the funds Azet invests in vs. the ones they pass on, and Azet’s strategic value-add to venture GPs. (0:00) Introduction to venture capital in Latin America and differentiating factors of successful funds (1:01) Consolidated strategies on asset capital and reserve strategies (2:48) Seed managers' follow-on strategies and diligence process (6:23) Accelerating and confirming the diligence process for funds (8:15) Evaluating emerging managers and attribution in spinout funds (10:40) Benchmarking data tools and selectivity in fund investments (14:30) Fund of funds product motivation and educating LPs in the Mexican market (19:45) The benefits of having LPs in Latin America and diligence on LPs by fund managers (23:09) Value addition strategies from top seed managers (24:51) Guest insights and encouragement for venture capital investment (26:04) Final thoughts and closing remarks

Ryan Serhant is the Founder & CEO at SERHANT., a star in the Netflix show “Owning Manhattan” and Bravo show “Million Dollar Listing New York”, and a 3x bestselling author. In this episode, Ryan and David Weisburd discuss SERHANT.’s meteoric rise as a top real estate brokerage in New York City, Ryan’s unique approach to sales, sales training, and branding, and what it’s like for a founder scaling a business in hyper-growth. (0:00) Introduction and background on Ryan Serhant's career (0:13) Reality of "Million Dollar Listing New York" and time management philosophy (1:02) Creating and sustaining company culture (4:41) Serhant's business model and competitive advantage (7:44) Challenges and institutionalizing service in sales (13:24) Managing sales and leadership roles (18:49) Production quality of Serhant Studios and new Netflix show (19:34) Talent development and handling disappointment (21:54) Strategies for scaling and hypergrowth (24:52) Team building and outsourcing (27:56) Personal branding and its impact (30:32) Brand management strategies (33:11) The thousand minute rule and productivity (35:13) Overcoming setbacks and business resilience (39:05) Business expansion considerations (41:12) Maintaining focus and core identity (44:10) Technology in investment and evaluating emerging markets (51:20) Diversification and market volatility adaptation (58:30) Sponsor: Wealthfront's automated investing (1:02:15) Future trends in institutional investing and key takeaways

Matt Farrell, Senior Investment Manager at WE Family Offices, sits down with David Weisburd to discuss how families with $50M-$1B+ invest their capital. They also cover balancing risk tolerance and liquidity needs, where alpha is in the market today, and characteristics of an ideal private fund manager. (0:00) Introduction and overview of We Family Office (1:01) Description of We Family Office services and typical client profile (2:44) Fee structure, advisory approach, and client portfolio strategies (5:30) Risk tolerance, liquidity needs, and behavioral finance in family offices (8:00) Benefits of illiquidity and investment strategies for ultra high net worth families (11:43) Alpha generation in fixed income, private credit, and venture capital (18:14) Manager selection and characteristics for private funds and venture investments (21:14) Podcast announcements and call to action (21:34) Non-economic reasons and managing co-investments in private equity (23:37) Value add in venture capital and the process of referencing managers (27:03) Final thoughts and personal insights from Matt Farrell

Mike Maples, Founding Partner at Floodgate, sits down with David Weisburd to discuss Mike’s new book “Pattern Breakers: Why Some Start-Ups Change the Future”. This is a masterclass on early-stage venture investing. Mike shares his views on identifying ideas and founders that led to his early investments in Lyft, Twitter, and Okta. They also cover how Mike thinks about fundraising from LPs, his learnings from legendary LP David Swensen, and the power and importance of pursuing non-consensus ideas. (0:00) Introduction and the comparison trap in startups (0:16) Investing in the power of an idea and evaluating Twitter (1:22) Mike Maples' new book, Pattern Breakers (2:08) Startup capitalists vs traditional capitalists and rule disruption (4:17) Creating unique value and the evolution of Twitter (9:10) Lessons from investing in startup pivots (15:22) Significance of founder future fit (21:54) Technological inflections and business model differentiation (25:08) The breakthrough sequence and the role of movements (29:31) Founder motivations and building LP relationships (35:09) Balancing missionary zeal with LP buy-in and VC strategies (38:25) Valuing unique advantages and Peter Thiel's concept of mimesis (40:24) Being nonconsensus in venture capital (42:22) Evaluating startup ideas and David Swenson's influence (45:25) Benefits of venture capital partnerships (47:14) Maintaining a focused venture fund (49:06) Knowing your circle of competence in venture capital (51:20) The role of access and promoting Pattern Breakers

Dr. Russell Read, current CIO at 10X Capital, and former CIO at CalPERS, CIO of Alaska Permanent Fund and CIO of the Gulf Investment Corporation sits down with David Weisburd to discuss his extensive career as a premier investment professional. They dive into how large scale pensions allocate to private markets, how those plans structure co-investment programs and design a theoretical allocation strategy. (0:00) Introduction and financial impact of median performance (1:05) Dr. Russell Read's background and challenges at CalPERS (2:18) International investments and private market allocation strategies (4:25) Scalable assets and co-investment program structures (7:09) Staffing effectiveness and the Alaska Permanent Fund transition (11:18) The role of external consultants and understaffing issues (13:53) Sponsor: 10X Capital Podcast Newsletter (14:17) Geographic focus and co-investment market dynamics (17:23) Launching a new investment program and lessons from Ontario Teachers' plan (19:40) Size considerations in alternative investments (21:52) Liquidity premium and asset management strategy with Dr. Russell Read (24:58) CIO reflections and final thoughts on market opportunities (27:35) Bonus question on the 60/40 investment model (29:21) Closing remarks and appreciation