Crossover Arms at MM HF
Hi all - would anyone happen to have any insight on the crossover private markets investment arms at the large pod shops (think Point72 Ventures, BAM Elevate, Point72 Hyperscale, etc)?
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Crossover private markets investment arms at large multi-manager hedge funds (MM HFs) like Point72 Ventures, BAM Elevate, and Point72 Hyperscale are typically focused on blending public and private market strategies. Here's what you need to know based on the most helpful WSO content:
Focus Areas:
Structure and Strategy:
Advantages:
Challenges:
Examples:
Career Opportunities:
If you're considering a role or partnership with these crossover arms, it's essential to understand their specific investment focus and how they integrate with the broader hedge fund strategy.
Sources: Credit Hedge Fund opportunities, Anyone have info on Insight Partners?, Troubled fundraising processes, Demystify the LT SM / tiger cub / "PE approach" vs. MMHF / pod shops?
Bump
Yea they're pretty solid. They've been pretty hot. They all do kind of different things right, you just have to look at what the rest of the MM does. For example if they run a fundamental book and need IPO allocation, you'll get hot venture companies. If they run a credit program of any kind then you'll see them investing in hardware. It's a good synergy to have with the rest of the organization because there are lots of strategies where a logical way to monetize an additional product is to invest in the companies that are at the fringes of the MM business in a way that overlaps with the activity of a venture team. The circle of that Venn Diagram is how you figure out what any of the given teams focus on, and where they have a selling point to win deals.
Most of the guys at these teams are pretty cool too, I've had a few interactions that left a positive taste in my mouth, though don't believe in gossip so will leave it at that.
For the pods that are allowed to do cross over investing how do they manage to keep market neutral?
Pretty sure they don’t do that. They have individual pods dedicated to privates investing (e.g. BAM’s private markets teams are categorized under BAM Elevate and Corner Point, and P72’s are under P72 Ventures and Hyperscale), rather than doing crossover investing within pods.
There are a few pods in HC/biotech that have substantial cross over strategies
Anyone have any insight on P72 ventures and BAM Elevate specifically?
Work at an analyst at one of those pod shops on the L/S side but have interacted with the teams, and overall had a really good impression of them. Team seemed super sharp. I’m not a VC guy and thus the entire VC scene seems a bit culty to me where it feels like everyone drinks their own kool-aid, but based on my limited interaction it seems like the MM crossover VC investors are a lot more grounded.
P72 ventures has a few sour grapes do not recommend
Seems like they've been recruiting for an associate for a while now and heard part of the reason was because they had some senior departures / turnover
Does anyone know how P72 Ventures and BAM Elevate usually recruit? Are they covered by headhunters?
Does Cit invest in privates as well?
How would one target these teams?
For the pure VC strategies, they probably target from a traditional growth or VC background.
One of the top PMs at C runs private strategy at Surveyor. BAM trying to reproduce this.
what kind of privates does he/she invest in?
Biotech private and public L/S
At a number of the pods at M and C, select pods get to invest in privates along with public’s. However, I’m assuming you’re referring to the dedicated privates strategies at the MMs. In that case, the two main ones are Point72 Ventures and BAM Elevate, which are pretty different.
Point72 Ventures is larger, and is focused all across stages (pre-seed and seed to mid-stage and some late-stage) across the tech ecosystem (consumer tech, health tech, enterprise software, defense tech, industrial tech, etc.). They’re a very active investor across the entire venture ecosystem. Culturally, I’ve heard mixed things, some personalities can be a bit rough, which tracks in that the people there have more of a traditional finance background (lots of people from IB or buyout), although everyone there has come off as personable when I’ve met them.
BAM Elevate is a much smaller team, I think they can be thought of as another “pod” with a single PM and a couple of analysts underneath. They’re more focused - I believe they primarily focus on mid-to-late stage venture (think Series C+), and they’re very active across enterprise software and industrial / defense tech. Culturally they’re known to be on the nicer side, and my I’ve had a good impression of them from my limited interactions with them.
At the end of the day, although I’ve seen the former invest in later stages and the latter invest in earlier stages, you can think of P72 Ventures as a more traditional VC team that sits in a HF that leans towards earlier stage (lots of pre-Series B) and BAM Elevate as a HF pod that does later stage venture (more marquee investments).
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