An Individual LP's Guide to Investing Like an Institution | Samir Kaji | Superclusters | S1E8

Jan 8, 2024

Samir Kaji, CEO and Co-Founder of Allocate, talks about the biggest changes in the LP universe in the next decade. They discuss portfolio allocation for emerging managers and the challenges they face. The episode explores the evolution of LPs and the disruption of the VC world, fundraising challenges, accessing venture funds, integrating work into life, finding joy in work, and building relationships in venture capital.

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ADVICE

Back Founders And Managers With Grit

Favor founders and GPs with a chip on their shoulder, hustle, and long-term ambition over pedigree alone.
Look for self-awareness and evidence they can build a durable, multi-decade firm.

ADVICE

Ask The Enterprise Value Portfolio Question

Ask managers what enterprise value is required to reach target net returns to test their portfolio math.
Use the answer to reveal if ownership assumptions and deal sizing actually support promised returns.

ADVICE

Use Beginner's Mind To Uncover Thinking

Use a beginner's mindset and ask follow-ups to reveal how managers think and learn from edge cases.
Samir credits podcasting with sharpening his listening and follow-up question skills for diligence.

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Samir Kaji is the CEO and Co-Founder of Allocate, a private markets technology company that pairs origination with portfolio management tools to allow investors to efficiently construct and manage their alternatives portfolios. Prior to Allocate, Samir spent 22 years in venture banking between SVB and First Republic Bank and closely worked with and advised over 700 venture capital and private equity firms. During this time, he completed over $12B in structured debt transactions and has invested personally in over 75 funds and companies, including early-stage investments into Carta (seed), Side (seed), PolicyGenius (Series A), and FanDuel (Series B) as well as Growth investments into Reddit, Alto Pharmacy, and Carbon Health. He has also invested in over 40 funds across various investment types. Samir completed a finance undergraduate degree at San Jose State University, a finance MBA from Santa Clara University, and completed the prestigious Kauffman Fellows venture program in 2017. Samir is also the host of Venture Unlocked, a top venture capital podcast available on Itunes, Spotify, and Substack. You can find Samir on his socials here: Twitter: https://twitter.com/Samirkaji LinkedIn: https://www.linkedin.com/in/samirkaji/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters

OUTLINE:

[00:00] Intro [04:15] What will be the biggest change in the next decade for the LP universe? [08:45] Portfolio allocation for emerging LPs [12:32] How has Samir's LP investment strategy evolved over the years? [16:04] Why Samir invested in Bullpen Capital's Fund I [17:43] GP-business model fit [19:40] GP red flags [21:00] The one question Samir asks to see if GPs understand how to do portfolio math [23:31] The art of asking good questions [29:44] What is the Minimum Viable Fund? [36:14] How to pick 10 funds out of 4000 VC funds [42:19] How did Samir pitch Allocate to his investors? [48:11] The first hires at Allocate [50:53] How Samir defines work-life integration [56:38] The first two emerging fund managers Samir backed at First Republic Bank [59:41] The lesson Samir's father shared with him when he thought about leaving SVB [1:02:41] What happens when you overanalyze [1:07:27] Thank you to Alchemist Accelerator for sponsoring! [1:10:02] If you liked it, give us a like or share! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters