The Overlooked Alpha in This Next Decade of Venture with Claude Grunitzky and Adrienne Rees

This week on Swimming with Allocators, Earnest and Alexa welcome Claude Grunitzky and Adrienne Rees of the Equity Alliance fund. During this conversation, Claude and Adrienne discuss their mission to invest in VC funds and startups founded by women and people of color. They discuss their strategy, the importance of a strong team and network, and the criteria they use to select managers. They also highlight the unique value proposition of the Equity Alliance, which offers more than just financial resources. The episode also covers the future of venture capital, the challenges faced by large institutional limited partners (LPs) in investing in funds led by people of color, the importance of building a diverse portfolio, and more.
Highlights from this week’s conversation include:
The Equity Alliance Origin Story (2:22)
Starting with a Proof of Concept Fund (4:41)
Investment Strategy and Manager Selection (6:23)
Platform Management and Supporting Emerging Managers (11:29)
The Equity Alliance's Special Sauce (12:58)
Tracking Data for Success (14:51)
Insider Segment: The Future of Venture Capital (18:04)
The reversion to a focus on cash (22:07)
Consolidation in the market and potential opportunity (23:57)
The pressure on diverse managers and the increase in overall quality (27:03)
The challenge for institutional LPs in investing in diverse emerging managers (30:23)
The benefits of a fund of funds strategy for institutional LPs (31:32)
The importance of authenticity when talking to LPs (33:57)
The Equity Alliance was founded in 2021 and invests in exceptional venture capital fund managers and startup founders who are people of color and women. By investing in undercapitalized diverse fund managers and founders, we are unlocking access to superior returns that the rest of the venture market continues to overlook. Our strategy of investing in funds and identifying the standout portfolio companies within those funds offers a risk mitigated return.
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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.