Moseley: APFC used secondaries and co-investments to avoid the J-curve
Steve Moseley · Innovation in Private Markets 1: Steve Moseley – The Space in Between GPs and LPs at Alaska Permanent Fund (Capital Allocators, EP.192) · May 3, 2021 · at 1:05:29
Steve Moseley, Head of Alternative Investments at APFC, discusses the historical structuring of Alaska's multi-billion dollar private markets program.
0:00 / 0:30exact quote · 30.4s
720p mp4 · rendered on demand · StarZero watermark
“We bought secondary assets, and that's because we were launching the program, and that's a great way, and it's the only secondary Asset acquisition that we've done because of a view on pricing, but there it made perfect sense because we were able to eliminate some of that kind of one asset risk that we'd otherwise have at the beginning of the life of the fund. That combined with some early co-investments, small because we wanted to prove that it worked, but a combination of small co-investments and the secondary purchase also allowed us to avoid The J curve”
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 Steve Moseley
Moseley: Talent and location constraints will ultimately derail APFC's success
“It's been very hard for us to open an office outside of Juneau, and so hiring and retaining the best people is a challenge for us. I think it's a challenge that will ultimately derail our success.”
Moseley: APFC Pulled Back From GP Stakes, Favors Manager Seeding
“So because of the pricing environment, and because of the time intensity, we haven't invested a lot of time and energy in stakes recently. I view the seeding business as a challenging but more sustainable opportunity.”
Moseley: Most LPs fail at pacing discipline by accelerating into hot markets
“One of the easiest things to get right for LPs, but still the thing that almost everybody seems to get wrong, is being disciplined about pacing, because there's so many structural mechanisms that push us as limiteds
To increase our pacing in hot markets, to in…”
Moseley: APFC owns 299 Park Avenue but cannot occupy space there
“Say, two 99 Park Avenue, which is a building we own, but I'm not allowed to occupy space there.”
Moseley: Not interested in staying at APFC without competitive resources
“If we're able to deliver those resources, which really just translate into money and focus, a larger team, a well-paid team, if we can't deliver those resources, then we won't win. And I'm not really interested in sticking around if we don't have the tools to …”