How LPs Uncover Survivorship Bias in GP Track Records

In this episode, Lucas and Luna dissect how limited partners detect survivorship bias in venture capital GP track records. A 2025 University of Chicago study found that nearly 15% of fundraising track records omit underperforming funds. The hosts walk through real-world detection methods: comparing fund-level IRRs across vintage years, requesting full fund genealogy, and using third-party databases like PitchBook to cross-reference. They also discuss a case involving a prominent growth-stage firm that quietly excluded a failed 2018 fund. LPs increasingly incorporate explicit covenants requiring full track record disclosure, but GPs still exploit gray areas. The episode ends with strategies for LPs to pressure GPs into honesty, including side letters and reputation risk. Perfect for anyone evaluating VC funds or managing an institutional portfolio. #SurvivorshipBias #VentureCapital #LimitedPartners #GPDueDiligence #TrackRecord #Fundraising #UniversityOfChicago #PitchBook #IRR #FundGenealogy #SideLetters #LPCommittees #PerformanceReporting #Investing #Finance #StartupInvesting #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo