Alex Ambroz

Performance calculation updates have led to people losing their jobs.

So not a conversation you want to have sometimes.

But the other part about it is much more functional from an LP's perspective of what is their role in managing a portfolio of assets.

And their role is finding, evaluating, investing, trusting.

gps trusting the investment managers and their processes their roles as lps are not securities analysts they're not valuation analysts and so they may think it from a big picture perspective but just historically and professionally it's not something that they're always comfortable with doing even if and i remember sitting around table joking

seeing in 2018, 2019, I'll never forget, there was a 2006 vintage year fund that was still being marked at one X on the book, you know, 10, 15 years later with no distributions.

And we used to joke about it.

You know, what are these guys doing?

When are they ever going to give up the ghost?

But a large part of the LPGP relationship is trust in the separation of duties.

And there's also career management aspects to this on the LP side.

Tell me about that.

Most senior investors working at an allocator, I saw somewhere that their average tenure working at a given allocator may be between five to seven years.

And if you're making investment decisions, you're locking up capital with a private equity or venture capital fund.

that's expected to be on paper, 10 years plus optional two one-year extensions, great.

That's at least approximately a 10-year life on that investment.

And if there are continuation vehicles and it just keeps going, well, we may never see the end of that fund, but it may not matter to you because you're already working at your next role.

And so the outcome of the investment decisions you made at the prior place, you never actually get to see how they fully played out.

It is rare to see a senior investor, any allocator who stays in one place their entire career.

The David Swenson's, the Dean Takahashi's of the world were rare in their time and are rare still today.