Kate Simpson

As a patient, long-duration asset class, we are signing up for...

an instrument that returns capital on the back end of an investment.

With a lackluster IPO environment in the last couple of years, LPs have struggled and have been lacking meaningful distributions from their portfolios.

especially relative to 2021.

2021 was such an outlier.

It sort of set people's expectations at probably too high of a level.

In the absence of distributions, which have certainly been more absent in the past couple of years, there are good signals in terms of, like we said, follow-on capital, graduation rates.

Where things are trading in the secondary market, I think that's a meaningful and good representative of progress of a company, demand for a company in the secondary market.

And the secondary market is here to stay.

It has served a good purpose in this environment where the IPO market has been a little bit lackluster.

And I think VCs have become smarter about utilizing the secondary market as a liquidity tool along the way, where they can take some chips off the table, but still play the long ball and ride their winners for future liquidity.

So at Gem, it's interesting.

We serve two constituents, right?

We serve our clients and our LPs.

We serve our GPs.

So when we say we want to be a best in class venture investor, we say that with both our LPs and our GPs in mind.

Maybe I'll take the LP part first.

You know, for our clients, for our LPs,

It's absolutely more than delivering strong performance.

It's often a thought partnership, a research partnership.