The AVCA Convention 2019 brought together venture capital professionals, limited partners, and industry leaders to explore capital deployment, emerging managers, and portfolio strategies. This gathering highlighted key trends in private markets and offered practical insights for firms navigating evolving fund economics.
Across keynote sessions and intimate workshops, attendees assessed deal sourcing tactics, governance practices, and performance measurement in a low-rate environment. The event reinforced how thoughtful alignment between GPs and LPs can unlock resilient value creation.
| Event Date | Location | Primary Audience | Core Themes |
|---|---|---|---|
| October 2019 | Chicago, Illinois | GPs, LPs, Fund of Funds | Manager Selection, LP-GP Alignment, Secondary Markets |
| October 2019 | Chicago, Illinois | GPs, LPs, Fund of Funds | Fund Terms, Governance, Co-Investment |
| October 2019 | Chicago, Illinois | GPs, LPs, Fund of Funds | ESG Integration, Secondaries, Capital Call Management |
Strategic Sourcing and Manager Selection at AVCA 2019
Evolving Due Diligence Frameworks
Firms presented refined due diligence processes that weighed quantitative benchmarks alongside qualitative team cohesion. Limited partners emphasized track records through multiple market cycles, transparent communication, and clearly defined risk committees.
Co-Investment and Direct Programs
Many institutions highlighted co-investment as a lever to align interests and enhance portfolio value. Dedicated direct programs allowed for selective exposure to top-tier entrepreneurs while managing fund vintage concentration.
LP-GP Alignment and Governance Practices
Fee Structures and Carried Interest
Participants debated tiered management fees, catch-up provisions, and the balance between hurdle rates and preferred return thresholds. The consensus pointed toward clarity, consistency, and alignment around long-term incentives.
Oversight and Reporting Standards
Standardized reporting templates, periodic deep dives, and third-party validation helped build trust. Governance discussions underscored the importance of constructive dialogue between investment and risk committees.
Secondary Markets and Liquidity Strategies
Timing and Portfolio Optimization
Sellers and buyers evaluated secondaries as part of portfolio rebalancing, lifecycle management, and capital recycling. Market participants highlighted disciplined pricing, efficient documentation, and coordinated transfer processes.
Valuation Methodologies
Appraisals, negotiated deals, and model-based approaches shaped secondary pricing. Transparent assumptions around discount rates, residual value, and vintage performance enabled more predictable outcomes for stakeholders.
Performance Measurement and Benchmarking
Metrics that Matter
Firms aligned on TVPI, DPI, RVPI, and internal rate of return while adjusting for fund-specific factors. Dashboard views linked individual deal progress to overall fund strategy, supporting more informed capital allocation decisions.
Peer Group Construction
Appropriate peer selection considered strategy vintage, geography, mandate size, and vintage dispersion. Thoughtful benchmarks reduced noise and highlighted genuine alpha across managers and segments.
Key Takeaways for Venture Capital Practitioners Beyond AVCA 2019
- Adopt structured due diligence that balances quantitative metrics with qualitative team assessment.
- Design co-investment and direct programs with clear mandates, governance, and performance tracking.
- Align fee, carry, and hurdle structures to promote long-term LP-GP collaboration.
- Leverage standardized reporting and third-party validation to strengthen oversight.
- Use disciplined secondary strategies and valuation frameworks to optimize portfolio liquidity.
- Build peer groups that reflect strategy vintage, geography, and risk-return profiles.
- Embed ESG considerations into manager selection, monitoring, and value-creation initiatives.
FAQ
Reader questions
How did AVCA 2019 address manager overcapacity in the mid-market?
The event explored manager overcapacity through dedicated panels on sourcing discipline, niche positioning, and value-added support. GP and LP discussions emphasized differentiated mandates, clear value propositions, and sustainable scale strategies.
What guidance did AVCA 2019 provide on navigating fee negotiations amid competitive environments?
Speakers recommended early alignment on fee structures, flexible catch-up mechanisms, and transparent communication around cost drivers. Workshops showcased model term sheets that balanced competitiveness with long-term partnership stability.
Which trends in co-investment were highlighted at AVCA 2019?
Panels noted the rise of dedicated co-investment platforms, centralized decision teams, and shared analytics. Participants reviewed best practices for deal participation, monitoring, and exit coordination across multiple funds.
How were ESG considerations integrated into discussions at AVCA 2019?
The convention featured sessions on material ESG factors, reporting standards, and integration into manager selection. Panels demonstrated how policy frameworks, scoring tools, and stewardship practices informed more resilient portfolio construction.