Michael Woolhouse

The other thing that it does, and one of the characteristics of this market is four to five year holds.

And in buyout, they tend to be a lot longer.

And if you think about the interplay between

having an MOC hurdle and an IRR hurdle.

Once you've cleared the MOC hurdle, that sponsor is very focused on continuing to compound IRR at 20% or greater.

Otherwise they run the risk of diluting the carry rate.

So to that end, when I was talking about the best alignment of private equity, I was initially framing that for the perspective of the quantum of the GP commit.

But as you think about the economics, there's tremendous upside here.

but it's with some constraints.

They have to perform, otherwise the carry is lower.

And there are some constraints which incentivize prolonged hold periods.

And for most LPs who care a lot about IRR, that's really powerful.

I think there is a tremendous need for liquidity in venture capital.

And at its core, the secondaries market is a liquidity provider.

We've been talking about this so far in a private equity context, but I think that same need and dynamic exists within growth equity and certainly exists in venture.

The lens that we use here, I think is analogous and appropriate in venture, which is to say something that's important to us is that the sponsor has the ability to sell the business today.

That's a transaction of choice coming from a position of strength.

And when the sponsor, we've been talking about this, rolls significant sums of capital into the CV, that's a lining, because they have the choice.

They could put the money in the bank account and get the second house or the new boat, whatever it was that you described before.

But I think there's some risk.