INVEST LIKE THE WORLD'S MOST SOPHISTICATED INVESTORS
THE PROBLEM – INCREASED RISK IN CORE STOCKS AND BONDS
Expected returns for core bonds are very low, in the 0%–2% range. That is a high price to pay (in terms of low longer-term returns) for the risk-reduction benefits of core bonds.
Compounding the problem, even best case scenarios for U.S. stocks results in low single-digit expected returns for the S&P 500. While that return may exceed what we may earn from low-risk core bonds, we find it insufficient to fully compensate us for the volatility and downside risks as equity owners. It is well below the upper-single-digit-type returns we are looking for, at a minimum, from our equity investments.
Given the very low current yield on core bonds, their potential return is lower than in previous periods when the yield was much higher
The short-term downside risk for equities remains as high as it has ever been.
So even though core bonds may still mitigate some of the shorter-term downside risk from stocks, the degree to which they can do so is more limited in the current market cycle.
DIVERSIFY INTO VENTURE CAPITAL
HOW DO WE INVEST?
Investing in tech startups at their early stages paves the way for unprecedented returns. We deploy capital at SEED stages and capture the value early on as well as pro-rata investment rights into consecutive rounds. We justify investments given our data-driven, scientific selection and capital deployment strategies. Therefore, we shorten the illiquidity period to much less than the standard 10-year structure of a typical venture fund and add alpha throughout the investment process.
To learn more about our fund offerings, please provide us with some information about yourself and your interests. Our investor relations team will review your application and may contact you for further information. If you are selected, you will receive access to our investor presentation and related fund materials. You will also have direct access to the general partners of the firm to answer any questions you may have about the fund(s) and/or our organization in general.
A VC fund is a partnership which pools capital from limited partners. The general partners manage the fund and are responsible for its investment decisions. The investment team evaluates hundreds of tech startups every month and select the most favorable ones based on our proprietary selection model which helps avoid decision biases. The team then monitors each startup carefully and provides them with capital, guidance and the tools they need to succeed. As they grow and exit possibilities emerge, the founders of the company evaluate all possibilities with their investors. If an exit event happens, such as an IPO, merger or an acquisition, the exit proceeds come back into the fund and get distributed back to the limited partners on par with their contribution percentages. The general partners of the fund receive a portion of the profits after the capital is returned to the limited partners. This percentage is generally between 10% to 20%. The fund has an administrator who executes these financial operations and provides the necessary reporting and tax forms to the limited partners.
The limited partners are provided with much more detailed documentation to be reviewed before they join the fund. The fund is only open to "accredited investors." (See below)
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