E120: Why Bigger Isn’t Always Better in Private Equity and Venture Capital w/Teddy Gold
Description
Highlights:
Scaling Asset Management: Some strategies (like venture capital) are harder to scale, while others (like Blackstone’s approach) have proven successful at large scales.
The Principal-Agent Problem: Large institutions may prioritize minimizing risk, leading to missed opportunities, while smaller specialized funds often outperform.
Specialty Finance & Private Credit: Reducing management fees can boost returns, but smaller funds face scalability challenges.
Aircraft Engine Investing: A successful example of niche investing, where 3i members capitalized on aircraft engine teardown investments.
The Power of Membership Networks: 3i’s model thrives on a high-quality, skilled network that sources and executes investment opportunities.
Lessons Learned in Relationship Building: Early mistakes taught Teddy the importance of personal connections and relationship management in building a successful network.
Teddy’s Vision for 3i in the Next 5–10 Years: Expanding in key cities and maintaining high membership standards for long-term growth.
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Guest Bio:
Teddy Gold is the CEO of 3i, a premier investment network that connects family offices, fund managers, and excited entrepreneurs. 3i focuses on sourcing, vetting, and funding private market deals with the expertise of its highly skilled members. Teddy is committed to building a high-quality, scalable investment ecosystem that emphasizes personal relationships and expertise. With years of experience in venture capital and private equity, Teddy brings invaluable insights into the evolving world of alternative investments.
Our Podcast now receives more than 200,000 downloads a month. Are you interested in sponsoring an episode? Please email me at dweisburd@gmail.com.
We’d like to thank @ReedSmith for sponsoring this episode!
#VentureCapital #VC #Startups #OpenLP #AssetManagement
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SPONSOR:
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, Reed Smith delivers smarter, more creative legal services that drive better outcomes for their clients. Their deep industry knowledge, long-standing relationships and collaborative structure make them the go-to partner for complex disputes, transactions, and regulatory matters. Learn more at www.reedsmith.com.
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Stay Connected:
X / Twitter:
@dweisburd (David Weisburd)
@teddygoldtweets (Teddy Gold)
LinkedIn
David Weisburd: https://www.linkedin.com/in/dweisburd/
Teddy Gold: https://www.linkedin.com/in/teddygold/
Links
3i: https://www.3imembers.com/
Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com
(0:00 ) Episode Preview
(2:31 ) Growth strategies and avoiding adverse selection in 3i
(5:21 ) Raising funds and criteria for first-time fund managers
(8:00 ) Sponsor: Reed Smith
(10:03 ) Trust breakdown in institutions and venture capital fee structures
(14:10 ) Specialty finance insights and private credit learnings
(17:30 ) Asset management cyclicality and network value
(20:46 ) CEO mistakes and the importance of personal relationships
(22:02 ) Closing remarks