Clearlake refused LP demands to cap strategy flexibility during fundraising
Jose Feliciano · José E. Feliciano – Flexible Private Market Investing at Clearlake (Capital Allocators, EP. 297) · Feb 13, 2023 · at 24:06
Jose Feliciano, co-founder of Clearlake Capital, discusses raising the firm's first fund during the 2008 financial crisis and resisting LP pressure to constrain their flexible investment mandate.
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“We were certainly asked by some of our potential LPs, well, we would invest if you restrict this part of your strategy to no more than 40% of the investments or no more than x. And we refused to do that. Even at a time we were desperate for capital because we were convinced, and this is where the entrepreneurial is your, I believe you are really, we have bad things or doing something a little bit different. We didn't compromise. We were adamant that we'd rather raise less capital, but have the flexibility we require.”
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