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Investing in Vintages
Matt Ober
September 30, 2024
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When you invest in alternatives, you have to not only pick managers, but you also are, Investing in Vintages.
Picking good investment managers is hard. Whether you invest in hedge funds, private equity or venture capital. Once you find good managers, you then have to realize that investing in vintages is key to success. Picking one manager, and only one of their funds is hard. You are better off investing over multiple funds with that manager. Picking the vintage is like picking when to enter the public markets. It’s hard to have perfect timing.
Right now, there is lots of talk about this being a great vintage for early stage seed investing. Whether you are deploying right now or over the next 18 months. But is it good for late stage venture capital right now. Or what about private credit? Private credit was a hot topic and lots of investors were looking for private credit for the last few years, but is that opportunity disappearing?
I think the key to being a successful investor in alternative investments is finding good managers and then deploying with them over multiple funds. Don’t cherry pick. It’s too hard. Give yourself the opportunity to be invested over a few cycles so that you don’t miss their potential biggest winners.
Pick good managers, invest over multiple funds, and stay active. One of the best things about investing in alternative investment managers is the information you get. The insights from their quarterly letters or monthly or weekly private newsletter. Additionally their AGM’s (annual general meetings), the unique private events where you can meet other limited partners, network, and learn. These are arguably the best events to attend and are such a rich benefit to alternative investing.
“Like Morning Brew (but for venture capital)”
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