Zack Ellison’s Post

Venture Debt: Key Lessons Learned In part 16 of Zack Ellison's monthly debt series in Venture Capital Journal, he reflects on the critical lessons he has learned during two decades in the investment industry, spanning roles at five publicly traded financial firms, including three with over $1 trillion in assets. 📌 Key Highlights from the Article: ✅ Due Diligence: Diversify revenue streams, perform operational checks, and leverage third-party verification. ✅ Structuring Deals: Use A.R.I.’s “4S” rule (small size, seniority, security, short duration) and prioritize strong covenants and lien perfection. ✅ People: Align incentives and work with trustworthy partners. ✅ Market Cycles: Recognize cycles and adapt your strategies accordingly. ✅ Portfolio Management: Diversify, actively engage, and stick to what you know. 👉🔗Link to the full article is in the comments of the original post. #VentureDebt #PrivateCredit #AlternativeCredit #Investing #Innovation #Founders #InstitutionalInvestors #WealthAdvisors https://lnkd.in/euEBD_ST

Examining the opportunity set in venture capital, private equity, infrastructure, private real estate, private credit, and secondary strategies for 2024 and beyond.

"Venture debt is for growth, not survival. We're looking for companies that can raise equity but are choosing debt for strategic reasons." Dilution is one of the biggest problems that founders face as they look to optimize and manage their cap table. In this week's Scale newsletter, Claret's Brian Geraghty shares his insights on how and why to use venture debt strategically for growth. Thanks to Aryaman Banerjee and Rahul Berry for including us! Read the full piece here ⬇️ SCALE Newsletter: https://lnkd.in/g-rD22DD Claret website: https://lnkd.in/eYT4iKFB https://lnkd.in/g-rD22DD #venturedebt #venturecapital #startupfunding #scaleup #growth

𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐕𝐬 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: 𝐊𝐧𝐨𝐰 𝐭𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞! 💰💸 Private Equity and Venture Capital are two popular forms of investment, but they differ in their focus, approach, and the types of companies they target. SHARE with your network REPOST to help others Thanks for Reading 🙏 #finance #investment #privateequity #stockmarket #cfa #investing

This is a great breakdown of two essential investment strategies! Private Equity often focuses on mature companies with potential for restructuring or efficiency improvements, while Venture Capital targets early-stage companies with high growth potential. Both play a crucial role in shaping industries and driving innovation. 👏 Vishwas Pandya

📢 Hot off the Press: The Latest Edition of Uncommon Cent$ - Venture Debt Newsletter! In this newest installment (#12 in the series), Zack Ellison explores portfolio management in venture debt, a critical yet often overlooked aspect of innovation investing. Originally published in Venture Capital Journal, this article dives into strategies that balance risk and reward, helping investors harvest growth while preserving capital. Venture lending isn't about chasing unicorns—it's about cultivating a resilient portfolio, optimizing risk-adjusted returns, and thriving in all market conditions. Whether you're a seasoned investor or new to private credit, this piece offers actionable insights into: ✅ Building diversified portfolios ✅ Minimizing credit risk through due diligence ✅ Navigating interest rate challenges ✅ Proactively managing borrower relationships Venture debt continues to shine as a powerful, all-weather strategy that complements venture equity with lower risk and steady returns. 📖 Explore this article and revisit previous topics in the series, such as deal structuring, risk management, and operational due diligence. As always, the goal is simple: help investors and startup founders unlock the value of venture debt. #VentureDebt #InnovationInvesting #PortfolioManagement #PrivateCredit #InstitutionalInvesting

Co-investing has become an integral part of the private equity and venture capital landscape. But could it be more efficient? 🚀 Learn more about how Apex Unitas can transform your investment strategy: https://okt.to/cM6DGJ Traditional co-investment processes can be slow, cumbersome, and costly, often laden with governance, tax, and audit burdens. That's why we introduced Apex Unitas, our latest solution designed for fund managers. Apex Unitas enables swift and cost-effective co-investment setups — operational in about a week and at a fraction of the cost. Whether you're looking to increase exposure to a portfolio company or streamline your co-investment process, Apex Unitas offers the flexibility and speed you need. #PrivateEquity #VentureCapital #CoInvesting #ApexUnitas #InvestmentStrategy #FinanceInnovation #FundManagement | Neil Clark

When you invest in a fund, you're typically only investing in that one category for a limited life span. For example, you invest $1M into a real estate debt fund that is a close ended 10 year 2-20, pretty standard, but that means that you're only going to get that asset class and no diversification. This is fine if that's what you're looking for, but if you're looking for a diversified portfolio of alts, like how family offices do it, then you may want to look into big firms that do funds in almost every asset class or look for holding companies that focus on investing in several asset classes like Champion Venture Partners. Now you can make just 1 bet into a whole portfolio of different alternative asset classes instead of a dozen or more into separate funds with their own fee and carry structures. There is no right or wrong here, just preference.

Discover the potential of private markets and explore how investments in private equity, venture capital, real estate, and private debt can diversify your portfolio and offer attractive returns. Learn about the investment process, benefits, and key performance metrics that make private markets an attractive choice for savvy investors by downloading our comprehensive factsheet. #PrivateMarkets #Investing #PortfolioDiversification

Navigating the complexities of private markets is essential for making informed decisions for investors. We're excited to present our latest factsheet, which offers a comprehensive overview of private markets. This guide provides valuable insights into private equity, real estate, and private debt, helping investors understand how these asset classes can enhance a portfolio's performance. Discover how private markets can offer diversification, higher returns, and strategic growth opportunities, while gaining a clearer understanding of how to leverage these assets to optimize your investment strategy.