Former GP fund, Brian Singerman and co -founder and managing partner Quiet Capital, Lee Linden, are looking for over $ 500 million for a new fund called GPX, three people familiar with the strategy said TechCrunch. This part of the GPX fund probably comes from the co -founder of Funders Fund, Peter Thiel, they told you.
GPX uses a two -page strategy. The company will invest about 20% of capital in funds managed by emerging VC, which are focused on pre -startups and seeds; The remaining capital will probably be allocated to a partnership with emerging managers in the field of leading investments at a later stage (almost certainly in series B) of their firms.
This is a fairly different approach in comparison with how most Venture firms work. While typical VC firms invest all their capital directly in startups, GPX adopts elements of the so-called fund model, which is a less common investment strategy, in which the company invests a certain part of capital in the portfolio of other funds, and circuitously in base assets similar to start-ups. While the Funds Fund offers a limited partnership convenient method to access firms below the radar or difficult to access, a significant drawback is a double layer of fees: those calculated by funds and those by managers.
While the capital collected by the Funds Funds company reached the lowest level of 16 years last yr, According to PitchbookSingerman and Linden bet that their personal brands, unique networks and a strategy, which is only partly a funds-affair, encourage limited partners to open checking books for GPX.
Singerman and Linden might be something to it. How the Venture capital focuses on The largest fundsSome of the best investors of these firms are not interested in being part of a large machine. They leave Behemoth firms to launch their very own investment costumes in which they might be more agile and specialized.
GPX bet that the next generation of VC investors will discover and withdraw many strong firms at an early stage, enabling Singerman and Linden to conduct subsequent investments in the most successful portfolio of managers.
Here, the GPX strategy becomes particularly useful: VC at an early stage often attempt to exercise the rights of pro-rescal in later financing rounds (series A, B and not only), but their volume of funds often prevent them from maintaining their percentage in the highest firms. In the face of such possibilities, small VC often try to lift special vehicles (SPV) from their existing limited partners. However, these processes are time consuming, enabling other investors to extend the desired capital places in the most sought after offers.
With the capital of GPX behind them, the emerging funds will find a way not only to exercise their laws, but also to run a later round.
Information previously reported Singerman and Linden are launching GPX, but they didn’t provide detailed information on the goal size of the fund and other strategy details.
Singerman and Linden didn’t answer the request for comment.