Crossovers with Combined Publics & Privates
Are there any crossover funds with combined public and private teams, or are all of them siloed these days? Interested in covering both.
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Kinetic
They're for the most part siloed from what I've seen, even at the senior level (at least at the well-known ones). It's incredibly hard to get the best out of your work product with a split focus. It's tough at the fund-level to mix the long duration illiquid nature of privates that aren't being marked to market with the day-to-day liquid portfolio of publics. Not to mention LPs will typically expect different outcomes and terms (think lockup/redemption clauses) for the different pools of capital based on asset-type.
Yeah definitely not. If you go there to be a crossover investor you might be disappointed, was told aside from some deal they did when they launched where "it was clear the primary reason for doing it was to give appearance of being a private investor", the only private investments they've made have been in SpaceX.
(source: analyst who previously worked at their partner fund).
To be fair, I dont really blame them for that approach, as the reason it's so hard to have one team do both is private investing is mostly about sourcing and very little about underwriting. So the guys with boots on the ground are realistically going to be doing the very small amount of fundamental work that goes into one of those deals.
Personally I think Kinetic CIO is a genius, looking at their 13F, seems like he convinced Sundheim to get them into SpaceX and now they can charge LP's 2 / 20 for a public fund that is 100 net long Mag7 and 100% SpaceX in private fund. HF GP's who got rich bc they figured out how to charge LP's 2/20 for QQQ's outnumber GP's who got rich for generating alpha by about 100:1
Hi just double checking, so basically there are no crossover fund associates doing both? That's very disappointing tbh, I wasn't sure if you mean that across (Altimeter, Dragoneer, Coatue, etc.) or if this just applied to Kinetic.
My bad in advance, I have poor comprehension skills
Altimeter, Dragoneer, Coatue are all silo'd between public / private teams, same with Alkeon. For XN the team apparently does both, but they do limited private investing it seems
For the most part, it's going to be publics-first shops where you get to do both (aka an overwhelming majority are public investments with a few private investments). There are a select few privates-first firms like Greenoaks, Thrive, and Ribbit where you can do both (idk for Thrive if Carvana was a one-off thing or if they are planning on doing more in the future).
Some publics-first firms with more meaningful private exposure that come to mind are SCGE, Durable, HMI, and Hill Path (the latter two aren't really tech-y crossovers, though).
Also, Temasek has crossover teams in tech and consumer, I believe. Also, I'm not completely sure, but think that Tiger and D1 silo their privates/publics teams, while Maverick allows for investing across both at Silicon and Capital.
Maybe some of the long-only shops might have teams that sit across both, but I'm not too sure. Think a Wellington, Bailie Gifford, Fidelity, TRowe, type shop.
And then yeah, family offices for sure allow you to do this. Some cool ones that are more institutional vs. boutique that come to mind are Newlands and Lingotto.
A ton of biotech guys, as well. Too many to name here.
Tiger and D1 do silo their teams similar to Coatue. Maverick I think has a team specific to privates for Silicon. The LO shops have dedicated privates investment professionals
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