Heard from VC LPs this week - an observation on coinvest. In public markets, most investors I work with invest in public markets through funds or passively. Typically only the largest / most sophisticated are investing in stocks directly. In private markets, everyone invests in funds but also wants to invest in companies directly via co-invest. From the most sophisticated down to the HNW investor. If you know you aren’t sophisticated enough to choose liquid stocks directly, why do you think you are sophisticated enough to choose illiquid companies? Does blending down economics on lower fee coinvest really help performance in the long run? Would love to see some research on whether co-invest really helps returns for the average sized investor in the long term.

Heard from VC LPs this week: Some 👍🏻 feedback from my talk at @Jason ‘s @liquiditypod conference. Sharing a slide here that resonated. GPs, if hard to raise, this basic formula explains it. Complexity so often underestimated by GPs, but LPs see right through it…