Aug 12, 2024
As the first generation of investment firm
founders approaches retirement age, the issue of succession to the
next generation is increasingly at hand. We’ve seen several
successful transitions of firms, many that haven’t survived their
founders, and an entire sub-industry arise to help facilitate
generational transfers across GP stakes, public offerings, and
structured transactions.
With both managers and allocators thinking more about the
inevitability of succession, I thought it would be helpful to share
what a leading allocator who reviews thousands of managers has
learned about the issue.
My guest on today’s show is Sarah Samuels, Partner and Head of
Investment Management Research at NEPC, which advises on $1.7
trillion in assets. As part of her work assessing managers, Sarah
has created a framework to analyze succession as an investment
risk. She was a past guest on the show, and that conversation is
replayed in the feed.
Our conversation covers that framework across its three key
metrics: performance, age, and economics. We discuss the challenges
of transitioning both economics and portfolio management, using
stories and analogies to other businesses along the way.
Learn More
Follow Ted on Twitter at @tseides or LinkedIn
Subscribe to the mailing
list
Access Transcript with Premium
Membership