Mastering Venture Capital in Public Pensions with Tony Meadows

This week on Swimming with Allocators, Earnest Sweat and Alexa Binns welcome Tony Meadows, a portfolio manager formerly for the private equity team at the Pennsylvania Public School Employees Retirement System (PSERS). During the episode, Tony shares his journey into institutional investing, his experience leading co-investments, misconceptions about investing in Asia, and the math behind manager selection in a $70 billion pension plan and process and portfolio construction. He also discusses the future of venture capital, the importance of track record, challenges of being a fund manager, the potential of emerging managers, solutions to streamline fundraising, and more. The episode also features Tyler Kirtley, partner at Gunderson Dettmer, speaking to what emerging managers can learn from more established VC firms.
Highlights from this week’s conversation include:
Tony's background and entry into institutional investing (1:26)
Approaching co-investments and the process at PSERS (3:16)
Manager selection process and portfolio construction (6:07)
Constructing the private equity portfolio (10:45)
Timing and relationship with new managers (12:52)
Insider Segment: How could emerging managers benefit from general counsel? (15:27)
The importance of track record for LPs (16:48)
The first female-owned private equity fund (18:22)
The GP Selection Process (18:58)
Importance of Deal Flow and Proprietary Deal Flow (23:08)
LP to LP Relationships (24:42)
Consolidation in Distressed Markets (28:59)
Final thoughts and takeaways (00:29:42)
Tony Meadows, a seasoned Portfolio Manager with over 17 years of experience in investment accounting, research, and management, most recently worked as Portfolio Manager for the Private Equity team at PSERS, one of the world's largest state-sponsored benefit pension funds. In this role, he oversees a substantial portfolio comprising over $7 billion in commitments and a net asset value of $4 billion, strategically diversified across geographies, strategies, and sectors. Tony's impressive professional qualifications include holding the CPA and CAIA credentials, exemplifying his commitment to financial excellence. His core competencies encompass sourcing, evaluating, recommending, and diligently monitoring private equity fund investments and co-investments, complemented by his adeptness in market analysis, due diligence, and risk assessment. Tony's remarkable achievements include pioneering investments in the Japanese and Korean private equity markets, as well as facilitating PSERS' first foray into a female-owned private equity fund. Furthermore, he has played a pivotal role in institutionalizing the co-investment underwriting process, resulting in over 35 co-investment commitments totaling more than $800 million.
Gunderson Dettmer is a law firm specializing in providing legal services to the startup and venture capital communities. With a primary focus on technology and life sciences sectors, the firm is known for its expertise in guiding emerging companies through various stages of growth, from formation to financing and beyond. Gunderson Dettmer's comprehensive legal support includes advice on corporate governance, intellectual property, mergers and acquisitions, and venture capital transactions, making it a trusted partner for innovative enterprises navigating the complex legal landscape.
Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies. Follow along and subscribe at swimmingwithallocators.com.
The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.

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@21:12 What criteria might public pensions consider when selecting venture capitalists?