E24: Joshua Berkowitz of Berkocorp on Why LP's Should Care about IRR% not TVPI

10X Capital Podcast

The 10X Capital podcast interviews the world's premier institutional investors to deliver insights on how they manage their capital. Interview topics include investment decision frameworks, capital allocation strategies, GP/LP relationships and many more.

E24: Joshua Berkowitz of Berkocorp on Why LP's Should Care about IRR% not TVPI

E24 • Nov 30, 2023 • 63 mins

Joshua Berkowitz of Berkocorp, sits down with David Weisburd to discuss investing in venture capital as a family office and why all investors should care about IRR (and not TVPI).

Key Points

Achieving a diversified portfolio involves backing exceptional GPs with strategies that align with their unique skills and experiences.
A successful follow-on strategy for GPs depends heavily on their level of involvement and the information they have about their portfolio companies, with lead investors typically better positioned for follow-ons.
Effective communication and consistent updates with LPs are critical for managing expectations and maintaining strong relationships, especially when adapting or evolving investment strategies.

We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans.

Speakers

Joshua Berkowitz

Guest • 73%

David Weisburd

Host • 27%

Chapters

0:00	Introduction to Joshua Berkowitz and fund return expectations
0:23	Underwriting to a 20% IRR and Joshua's background
2:09	Transitioning to venture capital and managing capital flows
4:14	Comparing IRR and MOIC in investment evaluation
5:31	Best practices for managing capital calls and time diversification
10:25	Strategies to stay in market and evaluate top emerging managers
15:52	Sponsor: Bidav Insurance Group
17:34	GP success stories and portfolio strategies
20:51	Consolidating return expectations for venture funds
23:00	Balancing portfolio concentration and diversification
24:50	Evaluating GP personalities and strategies for established funds
30:50	Differences between founder CEOs and operator CEOs
32:13	GP diligence and operational due diligence expectations
36:46	Fund documentation and portfolio construction for new managers
42:03	LP communication, strategy creep, and expectation management
47:12	Quarterly updates and LP versus VC value add
49:00	Follow on investment strategies and technical risks
55:20	Seed to series A graduation rates and LP lessons learned
59:03	Co-investment evaluation and LP portfolio management
1:01:31	Joshua's venture dexa.ai and data-driven decision making
1:10:45	Attracting talent and scaling strategies for tech startups
1:15:30	The significance of mentorship and early fundraising challenges
1:25:20	Learning from failed ventures and closing thoughts
1:38:00	Sponsor message: Wealthfront

Transcript

Loading transcript...

- / -