Meghan Reynolds, partner at Altimeter Capital, discusses the macroeconomic climate and institutional investor liquidity constraints with Ted Seides.
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“My reflection is that for the last three years, it's been the hardest time to raise capital in the 2005 years that I've been doing this, and that includes 2008 and 2009. It's actually been harder.”
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More from Megan Reynolds
PredictionNot checkable as stated
Reynolds: Institutional LPs will abandon mega venture funds for smaller managers
“You will see The institutional investors that have historically loved venture and participated in those big pools move down market, just like they did in buyout. All the ENFs left the mega funds between 2008 and 2012 for the most part. I think the same thing w…”
Megan ReynoldsMar 31, 2025▶ 53:15Meghan Reynolds – Art of Capital Formation (EP.438)
PredictionNot checkable as stated
Reynolds: Thousands of Zombie VC Funds Will Never Raise Again
“There's thousands of zombie funds. In the market that will never raise another fund because their track record does not justify it, and because people will realize that venture is not a get-rich-quick scheme, that not everyone and their mother deserves to have…”
Megan ReynoldsMar 31, 2025▶ 55:16Meghan Reynolds – Art of Capital Formation (EP.438)
Insight
Reynolds: LPs Avoid Direct Public Stock Picking but Co-Invest in Risky Privates
“Very few institutional investors organizations are actively managing public equity portfolios. They're not choosing stocks directly, but almost all of them are choosing in private companies directly and co-investing in companies where they have less informatio…”
Megan ReynoldsMar 31, 2025▶ 1:03:39Meghan Reynolds – Art of Capital Formation (EP.438)
AssertionSupported
Reynolds: TPG founders apologized globally and let LPs cut fund commitments
“We had to do what we called at the time a contrition tour, which was essentially David Bonderman and Jim Coulter traveling all around the world apologizing to our investors. We gave people an option to take their money out. We gave people an option to reduce t…”
Megan ReynoldsMar 31, 2025▶ 13:55Meghan Reynolds – Art of Capital Formation (EP.438)
AssertionSupported
Reynolds: Very Few Venture Funds Over $1B Have Ever Returned 3x+
“If you actually look at the historical data, there's been very few funds in history that have achieved three X plus that were over a billion dollars”
Megan ReynoldsMar 31, 2025▶ 1:01:13Meghan Reynolds – Art of Capital Formation (EP.438)
AssertionSupported
Reynolds: TPG's WaMu deal went to zero before capital calls finished
“TPG had raised a twenty billion dollar fund that it started to deploy very quickly into mega buyout deals right before Lehman fell and the financial crisis began. The first deal in that fund was Washington Mutual. Which went to zero before the capital was call…”
Megan ReynoldsMar 31, 2025▶ 10:49Meghan Reynolds – Art of Capital Formation (EP.438)
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