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Transcript

Ignite LP: Scaling Investments and Building Strategies in Private Markets with Matt Curtolo | #129

Private markets are often described as opaque and exclusive, but industry veteran Matt Curtolo has spent over 20 years demystifying this space. In a recent interview on the Ignite podcast, Matt shared his journey through private equity, venture capital, and the evolving world of investment technology. Whether you’re an emerging manager, an experienced LP, or simply curious about the inner workings of private markets, here are the key takeaways from Matt’s career and insights.

The Origin Story: From Back Office to Leadership

Matt’s journey began humbly in 2004 as a recent finance graduate working in the back office at Hamilton Lane, a now-publicly listed alternative asset management firm. Early in his career, Matt found himself managing financial statements and capital accounts for clients. While it was a data-intensive role, it exposed him to the nuts and bolts of private markets.

Over seven years, Matt progressed into client-facing roles, collaborating with sovereign wealth funds, pensions, and endowments. He credits these experiences with giving him a comprehensive understanding of how to align investment strategies with client goals. Matt’s tenure coincided with Hamilton Lane’s significant growth, and he described the firm’s culture as dynamic and fast-paced, almost like a startup.

Democratizing Venture Capital

One of Matt’s most transformative roles was at Allocate, a fintech startup aiming to bring top-tier venture capital opportunities to a broader audience. Unlike platforms like AngelList, which focus on smaller investors, Allocate catered to ultra-high-net-worth individuals, family offices, and wealth managers.

The platform’s appeal lay in its ability to pool smaller investments, enabling access to funds with high minimums that were otherwise out of reach. Matt explained that this approach benefited GPs, who could efficiently attract a new source of capital, while LPs gained access to well-vetted funds and professional diligence typically reserved for institutions.

What LPs Look for in Emerging Managers

For emerging managers—those raising their first few funds—Matt provided invaluable advice. LPs, he noted, are primarily looking for alignment between a manager’s strategy and their unique skill set. He emphasized the importance of storytelling, especially in Fund 1, where tangible performance data is often scarce.

“It’s all about GP thesis fit,” Matt said. “Why are you the right person to execute this strategy, and why now?” Transparency, consistency, and self-awareness are critical in building trust with LPs. He also encouraged managers to lean into their strengths and be authentic rather than chasing trends.

Key Trends in Private Markets

The discussion also touched on broader industry trends. Matt highlighted the increasing democratization of venture capital, driven by platforms like Allocate and advancements in technology. However, he cautioned that this movement is still in its early stages, with significant hurdles to overcome, particularly in integrating private market investments into retirement accounts.

On the other hand, Matt stressed the timeless value of “boring” investments in manufacturing, logistics, and supply chain—industries that don’t always grab headlines but offer consistent, long-term returns.

Practical Advice for Aspiring Professionals

Matt wrapped up the interview with advice that resonates across industries. Reflecting on his own career, he encouraged young professionals to take risks and be open to opportunities that push them out of their comfort zones. One of his few regrets? Turning down a chance to relocate for a promising role early in his career.

Final Thoughts

Matt Curtolo’s insights offer a wealth of knowledge for anyone navigating private markets, whether as an investor or a manager. His career exemplifies the value of adaptability, strategic thinking, and relationship-building. For those who want to succeed in this complex and evolving space, Matt’s journey is both a roadmap and an inspiration.

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Chapters:

  • 00:01 - 00:34 Introduction

  • 00:35 - 03:25 Matt’s Early Career and the Back Office at Hamilton Lane

  • 03:26 - 06:20 Transition to Client-Facing Roles and Key Lessons Learned

  • 06:21 - 09:46 Managing Portfolios for Smaller Institutions

  • 09:47 - 12:50 Navigating Alternatives and Asset Allocation

  • 12:51 - 15:30 Moving to MetLife and Managing a $700 Billion Portfolio

  • 15:31 - 18:55 Joining Allocate: Democratizing Venture Capital

  • 18:56 - 22:22 The Value Proposition for GPs and LPs

  • 22:23 - 26:55 What LPs Look for in Emerging Managers

  • 26:56 - 30:31 Evaluating Funds 1, 2, and 3

  • 30:32 - 34:43 Trends in Private Markets and Venture Capital

  • 34:44 - 39:45 The Rise of Remote Work in Finance

  • 39:46 - 46:06 Rapid-Fire Questions

  • 46:07 - 47:36 Closing Thoughts and Where to Find Matt