How LPs Stress-Test GP Vintage Year Returns

When a GP pitches a 3x fund, how much of that is skill and how much is just the vintage year? This episode drills into the specific discipline of vintage-year benchmarking — the practice of comparing a fund's returns not against the market average, but against the cohort of funds raised in the same calendar year. We walk through a real example: a 2015-vintage fund that returned 2.8x, which sounds strong until you see the 2015 cohort median was 2.1x. We cover the two main methods LPs use — the Cambridge Associates quartile table and the simple median-of-peers screen — and the common mistake of comparing a 2015 fund to a 2017 fund when the market was a different animal. We also talk about how LPs adjust for the J-curve, why early mark-to-market numbers are often misleading, and how a slightly-above-median return in a hot vintage can still be a pass. If you're evaluating a GP's track record, this is the lens you need. #VintageYear #VCPortfolioConstruction #LP #GP #TrackRecord #Benchmarking #CambridgeAssociates #QuartileTable #JCurve #FundReturns #VentureCapital #DueDiligence #Finance #Business #FexingoBusiness #BusinessPodcast #Investing #StartupInvesting Keep every episode free: buymeacoffee.com/fexingo