Wellspring Capital
Per Pitchbook, they haven't raised a fund since 2018 (which has been fully deployed for a long while) but continue to do new deals (I'm assuming through raising SPVs).
Are these guys just unable to raise another sizeable ($1B+) fund based on mediocre returns of recent vintages?
Based on the most helpful WSO content, it seems plausible that Wellspring Capital might be facing challenges in raising another sizeable fund due to underwhelming returns from recent vintages. This aligns with broader trends in the private equity space, where LPs are becoming more cautious and selective, especially in the current fundraising environment. Many funds that have struggled to deliver strong performance are finding it difficult to secure commitments, particularly as LPs are spooked and the denominator effect is being used as a reason to hold back on new allocations.
Additionally, the use of SPVs (Special Purpose Vehicles) for new deals could indicate that Wellspring is opting for a more flexible, deal-by-deal approach rather than committing to a traditional fund structure. This strategy is often employed by firms that face difficulties in raising a full-scale fund but still want to remain active in the market.
Sources: Troubled fundraising processes, https://www.wallstreetoasis.com/forum/venture-capital/vc-is-a-laughable-shitshow-change-my-mind?customgpt=1, This is the perfect time to go into VC, Which investing strategy will be most challenged this decade (‘20 through ‘29)?, Non US/Europe IB/PE Overview
They had a huge scandal a few years ago with the founder being involved in hiding the case of his son raping an IR professional - can search for articles online and read the case
Pretty sure that did serious damage reputation wise / don’t know how you come back from that
Interesting how the recruiter didn’t mention this part the other day lol
Wow... well that explains it.
Bump - Looks like they’re raising a new fund and still making investments. Would be interested in thoughts on firm overall
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