E11: Neil Datta, The Forbes Family Trust’s Approach to VC | Is there Alpha in Due Diligence? How to Signal Strength in Fundraising, and Should LPs be Fee Sensitive?

David Weisburd sits down with Neil Datta, Managing Director of Optima Asset Management managing the wealth of some of the world’s most important people (including the late Queen Elizabeth II). We're proudly sponsored by AngelList, visit https://www.angellist.com/tlp if you’re ready to level up your startup or fund.

The Limited Partner podcast is part of the Turpentine podcast network. Learn more: www.turpentine.co

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X / Twitter:

@NeilDatta18

@dweisburd (David)

@eriktorenberg (Erik)

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LINKS:

Optima https://www.optima.com/

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SPONSOR: AngelList

The Limited Partner Podcast is proudly sponsored by AngelList.

• If you’re in private markets, you’ll love AngelList’s new suite of software products.
• For private companies, thousands of startups from $4M to $4B in valuation have switched to AngelList for cap table management. It’s a modern, intelligent, equity management platform that offers equity issuance, employee stock plan management, 409A valuations, and more.

If you’re a founder or investor, you’ll know AngelList builds software that powers the startup economy. If you’re ready to level-up your startup or fund with AngelList, visit https://www.angellist.com/tlp to get started.

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Questions or topics you want us to discuss on The Limited Partner podcast? Email us at LPShow@turpentine.co

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TIMESTAMPS:

(00:00) Episode Preview

(01:43) Neil’s diverse background

(03:00) Why is Optima a management company?

(04:47) Why Neil is VC-skeptic

(06:35) Diligence and hype

(08:09) Institutional diligence on VC

(12:00) Which stage to invest into venture capital?

(13:15) Portfolio construction for an institutional endowment

(16:06) Sponsor: AngelList

(17:30) Diversification

(18:40) Correlation and lesson from the last crisis

(20:40) Diversification within different stages?

(21:45) Bullish on healthcare

(25:20) LP Advice for Emerging Managers

(28:55) Are top LPs comfortable with losing money in the correct way

(30:35) Balancing reputation with diligence

(32:00) The new SEC guidelines

(33:35) Investors complaining about fund expenses

(36:00) Fees and carry in VC

(37:10) Optima's Star program