Michel Del Buono
Chief Investment Officer, a16z Perennial. On 1 show, 2 appearances. The Shows tab opens the full record on each.
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Michel Del Buono is the Chief Investment Officer of a16z Perennial, the multi-family office of Andreessen Horowitz. He previously served as CIO of Jordan Park Group and held investment roles at Makena Capital Management and Scion Capital.
1shows
2appearances
54statements
7resolved
6supported
0contradicted
86%fully supported
5said about them ↓ Everything Michel Del Buono said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Del Buono: Most tech-focused RIAs have at most one or two professional investors
“So a lot of these firms do not have professional investors. So I often ask people as a quiz how many professional investors do you think are in, you know, RIA XYZ? And people will answer, I mean, percent, right? People answer me, 20%, 50%, 30%, but the number …”
Del Buono: Most Secondary Volume Flows Through Questionable SPVs
“The vast majority of the volume goes through these sort of questionable SPDs”
Del Buono: AI Startup Check Sizes Make Fund Scale Essential in Venture
“All asset management industries have some scale benefits to them. Venture traditionally had less and now has a lot. So if you're going to back a new AI startup, you can't show up with a million dollar check or two million dollar check that it's useless or let …”
Del Buono: Putting initial founder liquidity into friends' startups almost always fails
“I'll see someone with their very first liquidity, the very, very first liquidity, they take it and instead of doing something a little bit safe in case there's a rainy day, they turn around and they go put it in a bunch of like very early stage startups.
Often…”
Attorneys and CPAs ignore tax-loss strategies that rival complex trust structures
“Where I find that people have difficulty is you hire attorneys, right, and they're going to tell you everything about, or CPAs, about these trusts, but they're not going to have the knowledge
To compare that and contrast that to an investment strategy that gen…”
Wealth managers push diversification strictly to earn fees on founder stock
“Wealth managers, asset managers, It's very self-serving for them to say, hey, you should liquidate everything because obviously they can't, they're not going to charge you fees on your concentrate position. It's your stock. You brought it to the table, but the…”
Winning concentrated startup stock usually continues to perform well post-liquidity
“History has shown that hanging onto your stock Generally speaking, not always. There are counter examples, of course, to everything. Generally, you know, that stock that got you to the liquidity point will probably continue to do pretty well.”
Del Buono: Most founders should keep company stock while actively engaged
“But I'd say the vast majority of people should keep it for a while at least as long as they're engaged in the company, right?”
Nested L2 and L3 SPVs introduce severe, compounding counterparty risk
“So you see things L one, L two, you even see L three nested structures each time you're further and further away from the stock. And so there's more and more risks that you don't get, You know, what you thought you would, right? Because who's to say that the o…”
Del Buono: Young investors can hold up to 100% alternative assets
“If it's for a very young person, it's okay to have 80, 9000% alternatives, because they don't need the cash immediately. So let the stuff grow, you know, at the highest risk possible.”
Retail private market funds risk massive fee leakage through layered SPVs
“You just have to look at the underlying pieces and understand them, except that there's the additional complexity. How did they get this thing? Is it through an SPV? Is it through an L two SPV? What did they pay for that? How much of the sort of return is goin…”
Real asset depreciation and basis step-up can completely shield generational taxes
“If structured properly, you can offset Almost all the income from the property. And then because of something called a step up in basis, a death when you sell that asset after you pass away, you don't owe tax on that either. So you, along the way, all the inco…”
Andreessen and Horowitz founded Perennial finding traditional wealth management underwhelming
“The principles here, Mark and Ben included had been served by more traditional wealth management firms. And they looked to the LPs of A-sixteen Z and saw, you know, the big sovereign wealth funds, the big pensions have very high end professional investment tea…”
Del Buono: Traditional Wealth Managers Are Trained Service Providers, Not Investors
“Most of these firms, the independent firms have spun out of banks and the banks themselves don't train people to be professional investors, right? These people are trained to be service providers. They're trained to be responsive. They're trained to be helpful…”
Del Buono: Wealth managers charge AUM fees for services because it is more profitable
“So these services, in my opinion, should be fee for service. But because that's of course less profitable than having an AUM based fee on someone's entire balance sheet you charge that fee, you go through the motions of the investment management, but you view …”
Del Buono: Portfolios with 50-70% alternatives incur 3-4% annual look-through fees
“50, 60, 70% alternatives. On a look through basis, your fees are going to be three or four percent a year. So it's a huge headwind. If you can get rid of some of that by having a professional team in house and not always just hiring third party managers that c…”
Del Buono: Single-family offices require billions to justify talent compensation
“If you're trying to build a multi-asset class portfolio, global multi-asset class portfolio, you're going to hire a bunch of these sort of professional investors I mentioned. I don't know, you need five, six, seven of them, different asset classes. You've got,…”
Del Buono: a16z Perennial buys liquidated assets from dissolved family offices
“When the patriarch or matriarch passes away, very often the family office falls apart. Either the investments are completely turned around and things are liquidated in a hurry that results in large losses. By the way, we're the beneficiaries of that. Sometimes…”
Del Buono: Custodian Firms Disable Self-Service Features Under RIA Platforms
“When you move under the RA platform, those features are disabled to sort of keep you more locked into that ecosystem.”
Del Buono: Wealth managers offer menus of options to deflect liability
“A lot of, again, firms will present you alternatives. They'll say you can do this, or you could do that. You tell me what you want. And they're doing this for various reasons. One, they may not actually have a strong opinion. Two it's liability. If I tell you …”
Del Buono: Founders can stack QSBS tax exemptions across multiple trusts
“So you can create several trusts. Each of those trusts gets the now fifteen million dollar exemption before it was 10. So you can do that. Married couples now can get both.”
Del Buono: Secondary SPV Managers Can Sell Stock Without Investor Approval
“I've seen personally in cases where the stocks that are in the entity are sold by the individual managing the entity. And they don't need to seek approval from the people who invest in it, right?”
Del Buono: Perennial Has Encountered Full-On Fraud in Secondary SPVs
“I've run into a full-on fraud before, but, you know, the first thing we do is we pay a background check company to see, again, using you as an example, does she actually work at SpaceX?”
Del Buono: AI CapEx boom shields leveraged private credit from near-term crisis
“And that, right now, there's no indication of a slowdown in the economy, really. There's a few, you know, there was a bit of a surprise on the employment report, but by and large, the economy's growing, you know, the long-term trend for growth is not even two …”
The other half of the tape: Michel Del Buono's own voice is left out of every number here. Other people bring the name up 5 times in 2 episodes across the shows. every mention, with the transcript →
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| Show | Role there | Eps | Statements | Record | |
|---|---|---|---|---|---|
| SOURCERYLEDGER | Chief Investment Officer, a16z Perennial | 2 | 54 | 86% 6/7 | full record on Sourcery → |