Welcome to the Allocate Podcast, an interview and educational content series to help investors learn and navigate investing in alternatives. Join us to hear from leading founders, fund managers, and allocators on the latest trends and the keys to successfully participating in the private markets.
For our next episode, we’re delighted to have Hana Yang, Allocate’s Co-founder and CXO, host Seyonne Kang, Partner of StepStone Group.
Together, they deliver an inciteful conversation covering:
how to pick winning GPs
how to support portfolio companies and diverse GPs
the current and future fundraising environment for LPs, GPs, and portfolio companies
About Seyonne Kang:
Seyonne Kang is a member of the private equity team at StepStone Group, focusing on venture capital and growth equity investments.
Seyonne joined StepStone when Greenspring Associates, a venture capital and growth equity investment firm where she was a Partner, merged with StepStone in 2021. Before that she spent seven years in investment management with a focus on private capital and about a decade on Wall Street in institutional equities.
Ms. Kang earned an AB with honors from the University of Michigan at Ann Arbor and an MBA from the University of California at Berkeley.
In this episode, we discuss:
(02:00) Seyonne discusses the transformation of venture capital, highlighting the shift from being perceived as an "access class" to becoming more inclusive and diversified
(06:00) The difficulty in distinguishing among the sea of venture capital managers, emphasizing the importance of selection and deal-winning capabilities
(11:06) Building a firm and differentiating in a competitive landscape
(14:06) StepStone's efforts in supporting emerging managers, including negotiating with service providers and offering go-to-market assistance
(19:03) The balance between collaboration and competition among fund managers, particularly in the context of fundraising.
(24:03) How StepStone assists emerging managers in establishing their firms, focusing on providing practical support and sharing insights.
(29:46) Diversity and inclusion within the venture capital industry, noting significant representation among emerging manager cohorts
(37:05) Predictions for the fundraising environment and exit opportunities in the near future
(43:48) The continued evolution of the venture capital industry, expecting more specialization among funds and an ongoing maturation process.
(51:18) The misconception about the prevalence of carry checks among VCs, highlighting the realities of the industry
(52:06) The recent ease of raising funds and cautions about potential future challenges
(53:32) Managers not raising new funds, reflecting on the challenges and commitments required in the venture capital industry
(54:32) Common lessons learned by both new and experienced general partners, especially regarding fund management and investment strategies
(55:27) Challenges faced by successful GPs who decide to spin out and start their own firms
(56:54) Even established managers can struggle with building and maintaining LP connections
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Seyonne Kang, Partner at StepStone Group, on picking and supporting winning GPs