Peter Lacaillade: Why Now is the Best Time to Invest in Emerging Managers | E1096

You just have an unfair advantages over the public market. But the reality is- (digital beeping) ... when I joined SCS, we had $7 billion under management. I was investing maybe 200, 250 million a year. Now it's, like, about a billion and a half. It's amazing to me that the wealth management industry, it continues to be so fragmented, so under-served. If I do 10 funds, what I've found is three to five (bell dinging) exceed expectations, three to five (bell dinging) meet expectations, one to three underperform.

How quickly do you think you know the out-performers and the under-performers?

Like (censored) .

Peter, I am so excited for this. We've been friends for a while. You've been an amazing partner to me. So thank you so much for joining me today.

Harry, it's an honor. I, I'm big, big listener and, uh, great, great friendship, and thank you for having me.

Not at all. But you said to me before that you entered the world of LP and venture when you didn't really know what a multifamily office was. And so take me to your entry to SCS and how that came to be first.

Yeah, I mean, I'll back up for a second. So when I was at Georgetown, I wanted to be in the investing side, you know. I thought I could go right to the buy side. And then I found out, oh, actually, no, you n- need to do investment banking. And I worked at a scrappy, really kind of, you know, second, third-tier investment bank, but it was during '04 to '06. There were a lot of deals getting done, and so at a very young age, I was running around Santo Road doing financings with CEOs. I was, uh, doing IPO, being at the printer, like, leading, like, a team of accountants and lawyers and a guy from Deutsche Bank and ... So it was a very scrappy ... I didn't maybe get the best training in some ways, but formal training, but, like, go out there and do stuff was incredible and, um, my boss, Jeff Barlow, who's actually currently the head of banking, uh, or i- actually no, CEO of Canaccord, um, was a great mentor to me there. Uh, but I wanted to complement that with, um, a private equity firm and y- and I ended up at Harborvest, which was kind of the opposite, where great process, great people, and, and I saw the entire private equity world, and it really was a great insight into the different, the different pockets. When I went to business school, I thought, um, I would go into either, you know, low- lower middle market investing, either kind of on a control buyout or growth equity side, and I was interviewing or calling a bunch of Tuck alumni, GPs, trying to get a job. And one of the guys I called was like, "Well, I don't have a job for you, but the guys who manage my money are looking for a private equity person. Given your background at Harborvest, y- you could be a good fit." So I, I was interviewing with, like, four or five direct shops and then this random thing and, but then when I looked at it, I said, "Wow, this is an opportunity." They had 7 billion under management at the time, zero private equity, and there was one client that was investing 200, 250 million a year in the space. The, the comp was, like, the same. Like, I had ... So I had a vice president job at one private equity firm where I'd be the eighth person on a 14-person team, or build this out from scratch, and I, I took that and it's been, it's been amazing. I mean, it's really surpassed all expectations.