Chamath: Mega-Scale Investment Firms Must Maximize Fees Over Carried Interest
Chamath Palihapitiya · Chamath Palihapitiya – The Social Capital Flywheel (Capital Allocators, EP.167) · Dec 7, 2020 · at 10:05
Social Capital founder Chamath Palihapitiya discusses his early departure from traditional venture capital firm Mayfield and the institutional incentives of large investment funds.
0:00 / 0:11exact quote · 11.3s
720p mp4 · rendered on demand · StarZero watermark
“But if you really want to get to mega scale and run hundreds of billions of dollars and make it a business, you have to over-orient and over-index on fees and not really focus that much on carried interest.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Chamath Palihapitiya
Chamath: Venture Capital Now Yields Worse Beta Than S&P 500
“That as the number of entrepreneurs have gone up, the amount of capital has gone up, and the returns have come down, where now you're signing up for 10 to 12 years of illiquidity, and a market beta that's worse than owning an S&P index fund.”
Chamath: Social Capital delivered 5x-6x fund returns and 40% IRRs
“And now looking back, we have six X funds, we have five X funds, we've generated 40% IRRs, we've generated billions and billions of dollars of returns.”
Chamath: Building a 21st-century Berkshire has always been my ambition
“I wanted to build Berkshire And that was always my ambition.”
Chamath: Western charitable foundations are largely driven by guilt and greenwashing
“I think foundations and charitable investing is largely an outcropping of Western guilt.
And the reason is because everything here has to have a name.
Everything is branded.
Every dollar that's given by rich people has to come with a label attached to it.
…”
Chamath: Solving major problems over next 50 years requires for-profit businesses
“Most of the true innovation that's going to happen over the next 50 years will be technological in nature.
And so at a very practical, pragmatic lens, you're going to need to hire product managers and engineers and designers, material scientists, chemists, bi…”