Former GP founder Brian Singerman and co -founder and chief executive of Lee Linden is looking for over $ 500 million for a new fund called GPX, three people familiar with their strategy, they told TechCrunch. Part of the GPX fund will probably come from the co -founder of the Founder Fund Peter Thiel, these people said.
GPX uses a two -level strategy. The company will invest about 20% of the capital in funds that manages the emerging VCs aimed at newly established pre-seed and seed companies. The rest of the capital will proceed with the cooperation with the emerging managers for the top investments at a later stage (probably in the b) of their unblocking companies.
It is a fairly different approach compared to how most businesses operate. While typical VC companies are investing all their capital directly in newly established companies, GPX adopts data on what is known as a capital model, a less common investment strategy where a business invests some of its capital in a portfolio of other capital and not directly in subordinates. While a fund-of-funds offers limited partners a convenient way of accessing businesses under the radar or difficult access, one major disadvantage is the double mattress of the fees: those charged by the fund-controller and those underlying managers.
While the chapter set by fund of funds struck 16 years last year, last year, last year, According to PitchbookSingerman and Linden bet that their personal brands, unique networks and a strategy that is only partially a fan chapter will encourage limited partners to open their GPX check books.
Singerman and Linden may be on something. As business risk capital focuses on larger fundsSome of the best investors of these businesses are no longer interested in being part of a large machine. They let the magnificent businesses start their own investment clothes where they can be more agile and specialized.
The GPX bets that the next generation of VC investors will identify and support many powerful early stadium companies, allowing Singerman and Linden to co-operate later stadium investments in the most successful portfolio companies of emerging managers.
Here is where the GPX strategy becomes very valuable: early stadium VCs often try to exercise pre-report rights in later funding rounds (Series A, B and beyond), but the size of their capital usually prevents them from maintaining their proportion ownership of top companies. When dealing with such opportunities, small VCs often fight to increase SPV vehicles (SPV) from their existing limited partners. However, these processes are time -consuming, allowing other investors to dispel coveted shares in the most sought after agreements.
With the capital of the GPX behind them, the popups will have the opportunity not only to exercise their rights in favor of proportions, but also to lead to a later round.
The information previously reported That Singerman and Linden start GPX, but do not provide details of the size of the Fund’s goal and other strategy details.
Singerman and Linden did not respond to a request for comments.
Author’s note: This story has been informed to reflect Peter Thiel’s participation with GPX.
