Leander McCormick-Goodhart

Last year, some co-founders & I launched ReSeed, a sort of "Y combinator for real estate operators" (not affiliated w YC!). Writing to update you on progress & also to try to convince (some of) you to apply for Cohort Two. First, the update. In the past ~year, we: - Launched Cohort One w eight operating partner businesses (selected from among >600 applications) - Raised ~$55MM in discretionary capital & shook hands on >$100MM in deal-by-deal capital from a few large investors (Side note: Has been incredible to work w co-founders who have such broad & deep networks of their own) - Slow '23 on the acquisitions front, due to pricing not having adjusted yet - Productive '24: Closed on three transactions (Jan., May, June) all cash, with another expected to close in July Our goal for the rest of '24 & into '25: - Continue to support Cohort One as they execute the deals they've bought & hunt more, in what is becoming an interesting buying environment in some markets (not LA!), & - Recruit ~four mid-career people / partnerships interested in building large, independent, long-term-focused multi-family investing businesses to join Cohort Two. If that sounds like you & you're interested in applying, pls click the link below. (Note: As part of the process for selecting Cohort Two, we are reviewing last year's applications again. If you previously applied, no need to apply again, unless something dramatic has changed on your end.) https://lnkd.in/diQ5s34R

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Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

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He may have a checkered past but WeWork’s Adam Neumann and his investor’s Andreessen Horowitz may be onto something here. In building Neighbourgood, there are a lot of parallels in our respecitve businesses (barring a $350m investment from one of the worlds best known VCs). I have no doubt that the brand experience will play a significant role in the future of multi family living. Thats something Adam understands well. Combining best in class multi family and hospitality technology designed with community in mind together with fundimentally solid real estate investment principles provides for a very investable story. Yielding Propco/Opco economics if applied correctly can be very rewarding if executed well. And I guess the proof of the pudding will be in the eating. Will using Flow as a branded property manager generate 20-30% better NOI then a standard property manager in the multi family space? Only time will tell. Property and or hospitalty management (with our without technology) is a people heavy business. They are going to have to look closely at their operating costs, to build unit economics that make sense. Assuming their fees are market related, margins will be thin. Ask any of the large co-living operators who no longer exist or who have had to do m&a’s to survive. Adam’s play for WeWork is also a clever move and whether he gets it or not shows where his thinking is at. The future is of brand and product in the built environment is so much more then just the four walls of physical space. I think he understands that. My gut says this is not a blitzscale or one winner wins all opportunity. The multi family industry is the worlds biggest asset class. It is a behemoth that Greystar and BlackRock themselves could not gobble up all their own. So that leaves space for other companies to compete! And I think there will be a few. I’m excited to watch the development of the branded residence space. It’s entry is long overdue and the timing couldn’t be better. Watch this space! I think there is lots of GOOD to come! Ps: Andreessen Horowitz DM should you be interested in backing another horse as a wild card 😉😘🚀 South African entrepreneurs are always in for a shot!

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Family Offices Are Boosting Allocations to Alternative Investments (Private Equity, Private Credit, Real Estate) 1) In 2024, KKR’s survey of 75 family offices, 52 percent of their portfolios were to be invested in alts, up from 42 percent in 2022. The expansion is coming at the expense of all or most other asset classes. 2) Family offices, like other alts investors, think 2024 will be a standout vintage year. Interest rates remain higher and are expected to force distressed assets / companies to sell or recapitalize, even as the economic outlook improves. 3) “They understand the benefits the illiquidity premium plays in compounding capital in a tax efficient manner to build wealth for future generations,” Henry McVey, the head of global macro and asset allocation at KKR and the CIO of the firm’s $39 billion balance sheet. Read the full article here -> https://lnkd.in/gYbTjf8H #familyoffice #wealthadvisor #wealthmanagement #capitalallocation #alternativeinvestments #realestate #privateequity #privatecredit

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NY Tech Week has been exhilarating, dynamic, diverse, and inspiring! So many organic connections were made between investors, founders, and rising change-makers, and we learned so much about the current landscape and the future of innovation. The Fourth Effect, in partnership with EisnerAmper, hosted a vibrant panel discussion "Let's Talk About Boards" at Savills with uplifting expert speakers Mina E. Black and Caroline McCaffery. The Fourth Effect founders Breen Sullivan and Katrin de Haën are on a mission to empower female & minority executives to advise on governance boards and contribute their wealth of knowledge to the world by connecting them with startups seeking to establish boards and scale. So many founders in particular attended this event, and from the lively discussion afterwards, it's clear we all walked away thinking a whole lot more about the importance of proactivity, diversity & inclusion, and expertise when establishing company boards. AcceleratorCON, New York City Economic Development Corporation, and Civic Hall co-hosted the panel "Reimagining Accelerators for Tomorrow's Startups." Especial focus was given to tailoring accelerator programming to the startup cohort's unique skills and needs, peer-to-peer learning, intentional considerations to engage diverse founders, industry-agnostic accelerators, follow-on support and investor networks, as well as the rise of pre-accelerator accelerators. So much great info was shared at this event! My friends at Kaplak Ventures hosted a climate tech demo night at Brown Rudnick LLP on Times Square, where we heard enthusiastic pitch presentations from a diverse cohort of startups, from deep tech to arts-based solutions, including aich2, carbogenics, TeamStack.ai, Tesleon LLC, and Tolam Earth. Copenhagen-based Kaplak Ventures just partnered with New Haven-based climate incubator ClimateHaven to host the 3-month ReGen Accelerator program for seed-stage startups addressing the climate issues of today. I was especially touched by Kaplak's "Dreams & Details" model of leadership coaching and presentation, and am continually inspired by all the great work happening in the climate innovation ecosystem from Boston to New Haven to NYC. #NYTechWeek #NYC #NewHaven #Innovation #InnovationEcosystem #Startup #VentureCapital #Boards #Advisors #Accelerators #Climate #ClimateTech #TechWeek

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PE Firm Differentiation - how LPs think about firms, funds & investors I saw a great insight on Twitter from Ho Nam which relates broadly to any investment firm including PE, hedge funds, etc.: Ho Nam posted: "Everyone sounds the same... the [Investors / GP] don’t see it themselves. But if you ask any LP which meets hundreds of managers a year, they will confirm. It’s hard to stand out from the crowd. [Investors / GPs] must think deeply about how to be different. It’s not just a pitch - to truly *be* different, you have to commit to a continual process that takes you down a different path." P.S. There are 8,000+ active global PE firms and only a couple of effective strategies to differentiate - some of them seem simple but are not easy. Example - GTM Edge, deep hands-on expertise in scaling sales & revenue growth. Seemingly simple for any PE fund, but not easy and far more nuanced than what meets the eye. --------- #pe #privateequity #lp #differentiation #business

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Time between rounds is getting extended. Also there is so much competition for investor money. Money flows to the companies with the best GTM efficiency and not just growth. Founders need to be great at sales AND building a company.

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NY Climate Tech Founders! 1) YES PLEASE save the date to join us at #techweek (6/3!), and 2) YES PLEASE share your top NY resources to complete our NY INSIDER GUIDE, in collab with NYCEDC!

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☕ Tuesday morning I was able to attend the "New to VC: Pitching to LPs" hosted by nextNYC !! "New to VC is an educational series for a group of relatively new investors who want to be exposed to the best venture and startup thinking. Each event is attended by accredited investors and non-partner VCs that skew intentionally, but not exclusively, toward underrepresented backgrounds." 🎤 Charlie O'Donnell always moderates these events in a way where conversation is both natural and engaging. This time the audience gathered together to hear from LPs that evaluate emerging managers on what they’re looking for and seeing in the market right now.  💸 The panel consisted of ​Leena Bhutta, Chief Investment Officer of Doris Duke Foundation, ​Benjamin Zilnicki, Investor at GC1 Ventures, and ​Betsy Zimmerman, Co-founder and General Partner at First Close Partners. 📓 Should I share some takeaways?? Yeahhh, I think so! ⬇ When discussing the importance of delivering high-quality deals: "What is sometimes lost on someone starting a firm for the first time, is the repeatability of everything. The 100th deal is not the same as deal 5, because there is pressure at some point. The pressure to deploy high-quality deals is a real pressure for every manager." When discussing attracting diverse talent at new firms: "I'm always engaging with existing managers to ensure they add diversity to their ranks. When discussing taking a chance on a manager with a non-traditional record: "Sometimes we will take a bet on a manager without a traditional track record, but we would never want to be a reason a manager can’t complete their next fund if we don’t come back" 💥 And for my favorite - what to do to make sure you stand out to Partners? "I'm happy to look at emerging managers, but what's really important is to show what you’re doing to give an edge over the rest of the market" 💪 Be sure to follow nextNYC as well as these awesome professionals, especially if you're looking to learn from some of the brightest in NYC Venture Capital. #VentureCapital #EmergingManagers #InvestmentStrategies #DiversityInVC

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Over the past two years the venture mindset has shifted from growth at all costs to focus on revenue quality and margin expansion. But the announcement today of a potential Roofstock <> Mynd merger (an SFR investment platform and an SFR property manager, respectively) is a good example of when this ISN'T true: when there is an opportunity to consolidate power and dominate a vertical. Roofstock is a "pure" tech company, whereas Mynd is a tech-enabled services biz with lower margins and probably lower multiples. But Roofstock primarily gets paid on one-time transaction fees, whereas Mynd makes ongoing management fees. This merger allows the newco to provide end-to-end solutions from property buying and selling to ongoing management. A sluggish home sales market has made consolidation necessary to survive. If this integration is successful, it would position Roofstock as a leader in a more consolidated market, which could neutralize or even positively influence multiples in the long run.

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I’m a strong believer in the idea that leading is largely about building empathy. The job isn’t just helping others understand the mission - it’s helping them complete the mission and building alignment through personal context. To take it a step further, you can’t be empathetic if you aren’t curious. Curiosity drives us to ask deeper questions - those questions build empathy and, then, we become more aligned.

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PE - The Future of PE Investing Is All About...(Source: Partners Capital) Great data-driven insights from Partners Capital (an Investment Management service acting for endowments & foundations investing as LPs in PE) - by Daniel L. & Stan Miranda at Partners Capital: https://lnkd.in/eszXTMej "...we believe the Private Equity industry is currently experiencing a paradigm shift that will result in all Private Equity investors (LPs and GPs) focusing almost exclusively on the ability of the PE firm to grow portfolio company earnings faster than under the previous ownership. We refer to this as the PE owner’s post-acquisition operational value add (PAOVA), which is their set of skills and tools that are a core source of value creation. We believe the future is about identifying the firms with the greatest – and most repeatable – PAOVA capabilities." #business #pe #privateequity #investing #growth #valuecreation

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📈 PE-Backed PortCo Friends 📈 🚀 Please take 10 minutes to help shape the future of PE governance. We are underway with our 3rd Annual FALCON and PrivateEquityCXO Top 50 PE Firms for Executives research. Year 1, we got some attention. Year 2, lots of sponsors asked to get involved. And as we head into Year 3, we have more engagement from private equity firms than ever. What's the point? They and interested in your feedback so they can improve the way they hire and govern. That's a good thing for execs. PE-backed assignments are tough enough as is, and nearly impossible when the fit between sponsor and management is off. We need your help because our report is 100% based organic survey results from execs, with zero pay-to-play for sponsors. PE firms will always be demanding and rigorous. But the best sponsors for execs: a.) are honest with themselves about how they govern, b.) have a consistent approach from deal team to deal team, AND MOST IMPORTANTLY... c.) most effectively hire executives who can thrive within their particular model. Take the ANONYMOUS survey here: https://lnkd.in/eNm7SBYM This is the first post in a series on this topic. Looking forward to sharing follow-up posts on each of the 9 Dimensions of Governance that can help PE firms and execs vet for fit, together! All of us want the same things, a high velocity journey to a lucrative liquidity event that generates proceeds for all. Our research is in support of this cause. Thank you friends!

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Summary: The article discusses the perspective of Notable Capital's managing partner, Hans Tung, on down rounds in investments. He believes that down rounds can still be beneficial in the long run and reveals his continued enthusiasm for the fintech sector. The article also delves into recent changes at the firm and other shifts in the world of venture capital. Key takeaways: Hans Tung believes that down rounds can lead to a successful outcome in the long run and views an IPO as just one milestone in a company's journey. Nearly 11% of the year's VC deals were down rounds, indicating their prevalence in the current market. Hans shares his optimism for the fintech sector and discusses the specific areas within fintech that excite him. Counter arguments: Some investors may still view down rounds as negative and prefer to avoid them in their investments. The article does not provide any potential drawbacks or criticisms of Hans's perspective on down rounds. #venturecapital #economy #startups

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Summary: The article discusses the current venture firm fundraising market and the success of emerging VC firm A* in raising $315 million for its oversubscribed Fund II. It highlights the firm's focus on early-stage investments and its experienced founding partners. Key takeaways: Venture firms raised $9.3 billion in Q1 and it is unlikely that 2023's record-breaking total of $81.8 billion will be surpassed. A* has been successful in fundraising due to its focus on seed rounds and backing breakout companies in its portfolio. The firm's founding partners have a strong track record and diverse experience in different industries. Counter arguments: The article mentions that emerging managers are feeling the frost in the fundraising market, suggesting that not all emerging VCs may be as successful as A*. While A* has found success in raising institutional investors for Fund II, this may not be the case for all emerging VCs. #venturecapital #vc #fundraising #startups #innovation

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I had the privilege to work with the tech team at The Carlyle Group nearly 20 years ago and find them to be one of the best teams at the firm. This situation with Veritas Technologies LLC, which was carved out from cybersecurity major Symantec in a highly-leveraged buyout, is a contentious situation that will arise often as hedge funds acquire ZIRP boom era leveraged buyout debt and flex their muscle in any re-negotiations with sponsors as debt costs rise and free cash flows decline. Feels like the 2007-2010 era and a good time to be an investor in distressed debt/special situations funds. History tends to repeat itself and we must respect, reflect and learn to move forward. Elliott Investment Management L.P.'s push to use its position as a large #debtholder to extract a bounty threatens a last-ditch effort by one of the world’s largest #privateequity groups to salvage a multibillion-dollar investment. #Privateequity firms are sitting on a record $3.2 trillion in unsold assets, according to Bain & Company. Deals with about $500 billion in debt mature by the end of 2028. Without easy dry powder to draw, more private equity firms will be forced to engineer solutions or turn in the keys and face significant equity value write-downs and lower returns to #limitedpartners. Other Veritas Technologies LLC creditors include BlackRock, PIMCO, Canyon Partners and SILVER ROCK FINANCIAL INC. One's pain could be another's gain in these volatile market times. Elliott Investment Management L.P., and their peers can buy debts trading at distressed discounts and then seek to reap a large windfall. These duelling forces then turn into contests to see which side blinks first. #alternativeassets #fundmanagers #privatemarkets #capitalmarkets #distresseddebt #leverage #restructuring

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For all you AI and data needs this is worth being aware of.

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While #Manhattan's #office woes grab headlines, #MIT's Nayeon Hong and Fábio Duarte just exposed a $525/sf #arbitrage opportunity hiding in plain sight: #Brooklyn. Key findings: 1. Amenity Density: Brooklyn trumps Manhattan 555 to 379 within a 15-minute walk. 2. Transit Supremacy: 113 stations vs. 67 in Manhattan. 3. Vacancy Goldmine: Brooklyn's 30% office vacancy dwarfs Manhattan's 20%. The numbers: - Brooklyn office stock: ~30 million sf - Potential convertible space (30% vacancy): 9 million sf - Conversion cost: $525/sf - Total opportunity: $4.7 billion The controversial take? Brooklyn's not just a Plan B; it's potentially more profitable than Manhattan conversions. Here's why: 1. Lower acquisition costs 2. Higher amenity density = better residential appeal 3. Less competition from other developers This isn't just about filling empty offices; it's about arbitraging an entire borough's misunderstood potential. While developers fight over Manhattan scraps, Brooklyn's sitting on a $4.7 billion #conversion goldmine. https://lnkd.in/gpbQ38VU

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Hear from Altamont Capital Partners, Ares Management Corporation, EQT Group and Investindustrial this September 4-5 at the Responsible Investment Forum: West. Gain actionable insights on the latest trends and themes impacting sustainable investments on the dynamic west coast, including The integration of ESG into value creation plans. Download the latest agenda to find out more: https://okt.to/SHt9MC #RIFWest #ESG #ValueCreation #SustainableInvestments

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