10+ hours of podcasts, in 5 minutes.
9 quotes from 1 episode on How I Invest, each with a timestamped link to the source.
Benjamin Black argues the traditional 10-year venture capital fund structure fails limited partners by promising liquidity that takes up to 20 years to materialize. To fix this mismatch, Benjamin Black packages late-stage private assets into publicly traded closed-end funds that allow investors to control exit timing.
Selling venture products with timelines that structurally fail to deliver promised liquidity drives limited partners away.
“I'd argue the board is on fraud. Like, we're selling a product that we know is not going to work the way it's intended. And that's a real problem and that drives people away from venture capital.”
Publicly traded venture funds allow individual limited partners to decide exactly when to exit their late-stage technology positions.
“And then from there, it's choose your own adventure for the LP…”
From Why Benjamin Black Took Venture Capital Public on Nasdaq
Public closed-end venture vehicles calculate management fees based strictly on net asset value.
“Our fees are based on net asset value…”
From Why Public Venture Funds Trade Carried Interest for NAV Fees
Packaging late-stage private companies into publicly traded vehicles gives limited partners the ability to buy and sell shares freely. Investors gain the power to exit positions whenever they choose.
“When I came across closed-end funds as a vehicle to hold late-stage private assets, I realized that this wrapper gave LPs exactly what they wanted…”
From Why Benjamin Black Took Venture Capital Public on Nasdaq
Adapting private technology assets to fit a 1940 regulatory framework requires 18 months of unpaid preparation. The structure forces founders to fund legal counsel and executive hires before earning fees.
“I spent my life translating how these venture assets are supposed to fit in the framework created by law in 1940…”
From Why Public Venture Funds Trade Carried Interest for NAV Fees
“I had to hire a full-time very fancy CFO…”
From Why Public Venture Funds Trade Carried Interest for NAV Fees
“Doing this from scratch, it does require and like I said, you have tremendous amount of upfront costs and you don't get your fees until you're actually trading in the public markets and that takes a long time…”
From Why Public Venture Funds Trade Carried Interest for NAV Fees
“I looked around and said the world is choking on 10-year liquid funds…”
From Why Benjamin Black Took Venture Capital Public on Nasdaq
“The opportunity for closing fund is created by something called the 1940 act…”
From Why Public Venture Funds Trade Carried Interest for NAV Fees
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