Many studies have shown that first-time funds outperform across most vintages!
For example, a Preqin analysis showed a consistent outperformance in IRR of over 3% in several vintage years.
“Every top performing and “brand name” GP has had to raise a fund for the first time.
Many of the LPs that have supported these first-time GPs’ initial investment strategies and talents have been rewarded with strong (and in some cases, exceptional) fund performance, increased portfolio diversification, experience with niche strategies and other factors beneficial to their overall investment program.” (Preqin)
We have also heard that diversity drives returns…
Of all US VC firms that ranked in the top quartile between 2009 and 2018, 69.2% of them had women in decision-making roles!
There is a growing number of LPs backing emerging and female managers – and for good reason!