Lindsay Searer, Executive Director of Investment Research and Shareholder of Crestone Capital, was recently featured in the July/August 2021 volume of Venture Capital Journal (VCJ), spotlighting the industry’s influential women. VCJ was first published in 1961 by noted private equity and venture capital industry expert, Stanley E. Pratt, who pioneered research, data tracking and trend analysis in alternative investing. VCJ was acquired by Thomson Reuters in the mid-nineties, is published by PEI, and provides market intelligence and insight on ways to operate, succeed and profit.
This article, “How firms are seizing the opportunity funds,” discusses why early-stage investors are looking to this alternate strategy to raising capital. The article states that opportunity funds allow for investors to benefit from rapidly growing portfolio companies. SPVs require fund managers to continually reach out to LPs when raising a vehicle, whereas opportunity funds offer an accessible pool of capital to invest from.
In the article, Searer shares that “opportunity funds are an elegant solution to raising countless SPVs, which can be burdensome to administrate for early-stage firms with small teams.”
She also adds that opportunity funds allow for GPs to act quickly. “As more firms raise opportunity funds, they present a chance for LPs to initiate a relationship with a high-quality, hard-to-access GP,” said Searer.