This past August, I joined SP Investments Management as its new Chief Investment Officer. After nearly 15 years in private equity focused exclusively on late-stage venture and growth equity-oriented assets, I’m elated to have this opportunity, and I wanted to give a few details on my background as well as talk about why I believe SharesPost is well positioned to bring true innovation to the growing and exciting secondary market.
I started my career in investment banking almost 20 years ago focusing mainly on technology-oriented mergers and acquisitions (M&A) before transitioning into secondaries in 2005. Since then, I have been fortunate to develop many deep relationships ranging across the private equity ecosystem, including the entrepreneurs and management teams of innovative companies, the limited partners (LPs) that invest in venture and growth funds, and the general partners (GPs) that invest their LPs’ capital into these companies. I have also served on the boards of both late-stage venture backed companies and venture/growth-oriented funds. Through these relationships, I have helped create a variety of strategies to help address various liquidity needs. As most investors likely know, the private equity market is a fairly illiquid space with increasingly complex liquidity management needs.
Over the last 20 years, the private equity market has grown and evolved dramatically as companies are staying private for longer, driven by three main reasons. First, regulatory changes have made it more challenging and administratively burdensome for companies to go public. Second, growth-oriented companies are often still developing their business models and auditing their product sets, which may result in higher volatility if implemented in the public markets. Third, the amount of private capital available to companies has surged as investors have increased their allocations to alternative asset classes in search of alpha due to general concerns around performance from the traditional equity markets.
This protracted lifecycle combined with the illiquid nature of the underlying assets has created a growing need for liquidity management, which has led to significant growth in the secondaries market. Of course, this environment also creates opportunities for secondary investors to structure attractive investment products for clients. Secondary investors have often been able to leverage these market dynamics to create diversified portfolios of high-quality assets, many times at discounts to their net asset value (NAV) or intrinsic value, with a near-term path to natural liquidity through M&A and IPOs.
While my colleagues and I have worked in the past to create a variety of strategies to address liquidity needs, very little has been accomplished around innovation of the underlying transaction processes themselves. What I found particularly appealing about SharesPost is that the team has adopted a zealous focus on how liquidity can be streamlined through technology in order to help remove friction from these processes. While technology certainly has its limitations, there is a real opportunity for innovation within the transaction processes to provide a better experience for all participants (i.e., the buyers, sellers, and underlying companies). SharesPost’s exchange for buyers and sellers of private company shares, as well as innovative investment products such as the SharesPost 100 Fund, enable both accredited and non-accredited investors to engage in new opportunities in the private asset class while at the same time facilitating access to fresh sources of capital for private companies.
I believe SharesPost’s dynamic and nimble workforce grants us the flexibility to spend more time delivering innovative strategies to investors and less time trying to navigate the internal challenges that often come with larger company bureaucracies. That said, success isn’t just determined by the agility of a workforce, but also the quality of the people that comprise it. I spent close to six months getting to know the SharesPost team in order to understand the caliber of people that work here, and what I found is a team replete with highly intelligent, passionate, and complementary professionals committed to making SharesPost the market leader in providing streamlined liquidity strategies and innovative investment products in the late-stage venture and growth market segment. SharesPost has forged a business model that I believe can accomplish true innovation, which is what ultimately convinced me to join this ambitious organization.
SharesPost will play to the strengths I’ve built over the past 15 years in addressing growing liquidity challenges, leveraging cutting-edge technology and market intelligence, and structuring innovative strategies and attractive investment products. As SharesPost approaches its 10-year anniversary, I believe its private marketplace and investment platform can achieve the scale necessary for impact in the secondary sector. I’m inspired to be working with such brilliant people in helping companies and investors achieve their goals for business growth and wealth generation alike, while having some fun along the way.
SP Investments Management, LLC serves as the investment adviser to the SharesPost 100 Fund (the “Fund”).
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about the Fund, please download here. Read the prospectus carefully before investing.
Investment in the SharesPost 100 Fund involves substantial risk. The Fund is not suitable for investors who cannot bear the risk of loss of all or part of their investment. The Fund is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment. The Fund has no history of public trading and investors should not expect to sell shares other than through the Fund's repurchase policy regardless of how the Fund performs. The Fund does not intend to list its shares on any exchange and does not expect a secondary market to develop.
All investing involves risk including the possible loss of principal. Shares in the Fund are highly illiquid, and you may not be able to sell your shares when, or in the amount that, you desire. The Fund intends to primarily invest in securities of private, late-stage, venture-backed growth companies. There are significant potential risks relating to investing in such securities. Because most of the securities in which the Fund invests are not publicly traded, the Fund’s investments will be valued by the Investment Adviser pursuant to fair valuation procedures and methodologies adopted by the Board of Trustees. While the Fund and the Investment Adviser will use good faith efforts to determine the fair value of the Fund’s securities, value will be based on the parameters set forth by the Prospectus. As a consequence, the value of the securities, and therefore the Fund’s NAV, may vary. Due to transfer restrictions and the illiquid nature of the Fund’s investments, you may not be able to sell your investments when you wish to do so. There are significant potential risks associated with investing in venture capital and private equity-backed companies with complex capital structures. The Fund focuses its investments in a limited number of securities, which could subject it to greater risk than that of a larger, more varied portfolio. There is a greater focus in technology securities that could adversely affect the Fund’s performance. If the Fund does not have at least 500 Members for an entire taxable year, you could receive an adverse tax treatment. The Fund’s quarterly repurchase policy may require the Fund to liquidate portfolio holdings earlier than the Investment Adviser would otherwise do so, and may also result in an increase in the Fund’s expense ratio. This is not a complete enumeration of the Fund’s risks. Please read the Fund prospectus for other risk factors related to the Fund, its investment strategy and your investment in the Fund, and other additional details.
SP Investments Management, LLC (“SPIM”) is the investment adviser to the SharesPost 100 Fund, and is a SEC registered investment adviser. SPIM is a wholly owned subsidiary of SharesPost, Inc., and an affiliate of SharesPost Financial Corporation. Certain potential conflicts of interest involving SPIM and its affiliates could impact the Fund’s investment returns and limit the flexibility of the implementation of its investment policies. New investment opportunities that meet the Fund’s investment objectives might not be offered, or otherwise made available to the Fund, due to affiliations between entities related to the Fund. Prospective investors should review the conflicts of interest described in the section entitled “Conflicts of Interest” in the Prospectus prior to making an investment in the Fund.
The SharesPost 100 Fund is distributed by FORESIDE FUND SERVICES, LLC.
You are now leaving the SharesPost 100 Fund area of the SharesPost website and proceeding to either a) SharesPost Inc. and its affiliates including SharesPost Financial Corporation, a separate company registered as a broker/dealer with the Securities and Exchange Commission and member of FINRA/SIPC, and SharesPost Investments Management, LLC, a registered investment advisor, or b) to another third party, including UMB Fund Services, Inc. and Foreside Fund Services, LLC, both SharesPost 100 Fund service providers.