E248: The Institutionalization of GP Stakes: What Comes Next

In this episode of How I Invest, David Weisburd interviews Mark Wade from Caz Investments at the FuturePeer Conference. Mark explains Caz's thematic investment approach, particularly focusing on GP stakes, driven by the growth of private markets. He details the structuring of GP stakes, the reasons GPs sell them, and addresses concerns about misaligned incentives. Mark emphasizes the importance of primary capital and the benefits of investing in GPs for cash flow and diversification. The conversation also explores the downside protection offered by contractual management fees and the "CAS case" for risk assessment. Furthermore, they discuss the illiquidity in the GP stakes industry and Caz's efforts to provide liquidity through tender offers and secondary processes. Finally, they debate the investment potential of sports franchises, with Mark presenting a bull case based on scarcity and diversification benefits.