CVC Unplugged: How to combine multiple investment strategies in one fund

What precisely is the role of a third-party CVC fund manager in the venture ecosystems of emerging economies? According to Richard Zeiger, general partner at Brazil’s MSW Capital, it’s an important role to educate the sector on and set standards.

In a relatively young venture ecosystem like Brazil’s, corporate investors can develop the reputation of a bull in a China shop – bringing an M&A mentality where it doesn’t belong, and consequently leaving people with a sour taste. In Brazil, that reputation is now changing, and third-party investors have a role to play in alleviating it.

We dig into the considerations of having multiple corporate LPs in the fund and how you can have one fund with multiple theses, as well as why MSW Capital rejects the label of CVC-as-a-service. Zeiger explains why corporates that already have a CVC still choose to invest with it, and how having a public sector LP, along with the corporates, influences the strategy.

He also talks about the importance for corporates of speaking to seasoned veterans when first getting started with CVC, why you shouldn’t go it alone, and why he thinks you shouldn’t be drawn in by “ready” or “as-a-service” solutions.

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