E110: How Legacy Knight Scaled $1.5 Billion in Under 5 Years

David Sawyer, Chief Operating Officer & Managing Partner at Legacy Knight : Multi-Family Office sits down with David Weisburd to discuss the top mistakes investors make in GP stakes, why middle-market GP stakes could be a game-changer for investors, and how GP stakes outperform traditional investments in 2024. (0:00) Introduction to Legacy Knight and competitive landscape (0:24) Overview and explanation of GP Stakes investing and Legacy Knight's dual platform (1:04) Flexibility in advising families and limitations of big banks (2:39) Drivers and succession planning in GP stakes sales (5:26) Management fee revenue and deal quality in GP Stakes (7:38) Underwriting LP re-up rates and diligence processes (10:01) Differences between GP Stakes and other fund investments (11:11) Revenue streams and financial targets in GP Stakes (17:03) Downside protection strategies and base case scenarios (18:38) LP preferences and role of investment bankers in GP stakes (19:21) Sponsor: Carta (20:07) Common mistakes and valuation metrics in GP stakes (23:23) Trends and market differences in GP stake sales (26:11) Trends in preferred equity and value addition by GP stakes funds (28:31) Fundraising assistance and due diligence in GP stakes (31:01) Banks' involvement and market correlation errors in GP stakes (32:31) Fragmentation and opportunities in the GP stakes market (35:18) Exit strategies and market performance in GP stakes (36:28) GP stakes across asset classes and infrastructure investments (38:42) Advantages of GP stakes and market innovation (40:08) Portfolio construction evolution in GP stakes funds (41:18) Deal size relationship with AUM (42:27) Final thoughts on the GP stakes market (42:58) Podcast closing and sponsorship information