The global Private Equity group, which is comprised of four sub-groups : 1) PE Funds, 2) PE Secondaries 3) Direct PE; and 4) PE Asia, is seeking a Senior Principal to focus on PE Fund investments specifically in the Venture Capital ( VC ) space.
This role would be part of the PE Funds sub-group although would be joined up with the rest of the department. The PE Funds team manages a portfolio valued at over $27 billion with total exposure approaching $50 billion;
however, our current exposure to VC is limited.
Reporting to the Managing Director, Head of PE Funds, the Senior Principal will be responsible for the development and implementation of a VC funds program.
The Senior Principal will lead deal teams in originating, executing and managing fund commitments across the VC market in both North America and Europe ( investing ).
In addition, there will be a strong relationship management component to the role with the successful candidate having responsibility for 10-
15 key VC firm accounts ( monitoring ). Lastly, the Senior Principal will seek to identify organizational information objectives, develop a process of capturing information gathered from the managed VC relationships and work collaboratively with other groups at CPPIB to disseminate the information internally ( knowledge sharing ).
The expected time allocation between investing, monitoring and knowledge sharing is anticipated to be 40 : 20 : 40. Ideally the position is to be based in Toronto, but London or the United States (medium to long term) is also a possibility.
Specifically, you will be responsible for :
1) Strategy Development
Work closely with the Managing Director, Head of PE Funds and other senior CPIIB team members to determine investment criteria, program objectives, and execution milestones
Map the VC market identifying potential fund investments and partnerships which meet our organization’s return, scale and information / knowledge sharing objectives
Consider non-traditional ways to access the VC market and to differentiate our organization versus other market participants
Develop an execution plan to approach the market and build out a $500 million to $1 billion fund program of 10-15 core VC managers
Collaborate with other CPPIB groups during strategy formulation stages to ensure program most effectively matches our organization’s needs
Drive the redefinition of the commitment / investment process to suit the intricacies of VC fund investing
2) Investment Role
A) Origination and Execution
Maintain strong relationships across the VC market to drive differentiated fund investment deal flow to CPPIB in a manner whereby it can be appropriately captured
Develop and maintain a VC fund Forward Calendar to ensure timely interaction with each GP that is raising a fund that fits with CPPIB’s objectives
Lead each deal team through the identification, evaluation (due diligence), recommendation and potential closing of a fund commitment
Present investment thesis and diligence findings, in collaboration with the team, at various internal Investment Committees
Develop and structure partnership agreements with knowledge sharing and other broader relationship benefits
Lead legal negotiations with a focus on documentation such as LPA, Subscription Document and Side Letter
B) Team Development
Review, analyze and comment on investment recommendations prepared by the PE Funds team
Help lead strategy formulation and decision making within the PE Funds team and PE Department
Represent CPPIB externally and be an active communicator of our strategies and objectives
Participate in and contribute to weekly departmental meetings
Lead the training and development of junior investment professionals including annual reviews alongside frequent informal check-
ins and feedback provision
Other relevant duties and projects as assigned
3) Knowledge and Relationship Management :
A) Advantaged Deal Flow ( ADF ) Generation :
Interact with key GP relationships on an as-needed’ basis to drive larger direct investment deal flow, typically in later rounds, for other departments within CPPIB
Evaluate and execute small co-investment opportunities directly alongside the GP
B) Knowledge Sharing :
Act as first point of contact between the GPs and CPPIB and ensure appropriate level of two-way knowledge transfer and network sharing
Develop process to capture information from relationships and disseminate across the organization
Interact regularly with other internal teams to determine information needs and facilitate knowledge flow from the GPs to the broader organization
Oversee the production of white papers with key insights gained from relationships, and plan events (lunch & learns, etc.
with VC firms which would benefit other CPPIB groups
C) Investment Monitoring :
Closely monitor GP relationships and investments to ensure a high level of stewardship and to maintain up-to-date knowledge, and ultimately a view, on the current state of the VC portfolio
Attendance at annual meetings, LPACs (both scheduled and ad-hoc) and other meetings in between is essential
Be prepared to offer guidance, advice and assistance to each GP relationship around strategic, team-related, portfolio-
related, or other issues
Review and approve capital calls and distributions related to VC investments
Monitor ongoing financial performance of GPs and our underlying investments
Coordinate with CPPIB Finance & Operations group with respect to monitoring investments
Extensive years of direct private equity or fund level private equity investing within the VC space is considered ideal.
Other experience such as entrepreneurial, investment banking, consulting, legal or other with a focus on VC will also be considered relevant assuming candidates have a genuine interest and rationale for moving into the funds space
Proven experience in sourcing, executing and completing numerous investments, with a particular focus on VC Fund commitments
Experience developing a VC strategy and building a portfolio of fund managers
Established connections with the VC ecosystem globally (Menlo Park, Boston, London, etc.)
Excellent investment judgement and sense of the deal within the VC space
Significant relationship management experience including primary responsibility for managing VC relationships and other external stakeholders
Experience capturing information gained from VC fund relationships and disseminating across a broader organizational body
Ability to connect with multiple internal stakeholders and manage information needs
Experience leading negotiations with multiple stakeholders and executing a wide range of agreements
Solid, demonstrated experience building, overseeing, leading, coaching and developing deal teams (e.g. recruiting, training, mentoring, etc.)
Proactive and creative approach to investment origination
Superior interpersonal skills; clear and proven communication skills (oral and written) as well as exceptional presentation skills
Being an enterprise standard-bearer of CPPIB’s Guiding Principles.
Open-mindedness to both diversity and enterprise-wide initiatives
Willingness to travel extensively
Additional languages an asset