Episode summary
The Biggest Mistake Fund Managers Make
How I Invest With David Weisburd
· · Hosts: David Weisburd · Guests: Ron Biscardi
Summary
Ron Biscardi argues that capital is not scarce; what is scarce is investor conviction, which takes time to build because LPs need to know the people, the process, and the business risk behind a manager. He says the fundraising market has become a long sales-cycle business, especially for sub-$300 million GPs, and that repeated meetings, patience, and trust-building matter more than a single pitch.
He also describes a structural shift away from blind-pool funds toward SMAs, deal-by-deal vehicles, and continuation structures, because LPs want more control and a safety valve. In his view, LPs are judged first on protecting capital, not maximizing upside, so managers must show consistency, operational maturity, and transparency when performance weakens. The biggest mistake fund managers make is blaming LPs rather than adapting the product to what investors want.
Biscardi applies the same logic to iConnections’ own growth: the platform compounded through network effects, scrappy execution, and crisis-driven innovation. He says the business has become stronger by solving problems quickly, from building a global digital platform during the pandemic to launching road show tools, investor portals, and event logistics that deepen year-round engagement.
Key takeaways
- Ron Biscardi says capital is abundant, but LPs only commit after a long relationship-building process.
- He says smaller GPs should expect years-long fundraising cycles and get more at-bats by showing up repeatedly.
- Biscardi argues LPs prioritize business risk and downside protection over maximizing returns, especially for fiduciaries.
- He says managers differentiate themselves by staying transparent when performance is down instead of hiding.
- Biscardi believes emerging venture managers should keep funds small, build network effects, and prove themselves before scaling.
- He says iConnections’ growth has been driven by crisis response, product innovation, and compounding trust across the platform.
Notable quotes
“Capital is definitely not scarce. There is a ton of money in this event”
“it's it's really more about building a relationship, taking the time for the LP to get to know you, building trust, and then capital absolutely flows”
“if you're a sub $300 million$200 million aum GP you have to expect and you have to be in this for years”
“protection comes first, growth comes second”
“When your numbers are down, that's the moment when you should be much more active and much more in front of your LPS”
How the episode opens
So, is capital truly scarce or has the bar for conviction permanently risen?
Capital is definitely not scarce. There is a ton of money in this event and we know from surveys that we did after last year's event, billions of dollars changed hands. I think this is just a long sales cycle business.
It's never an easy process. People don't commit tens of millions of dollars, billions of dollars without really knowing the people who are going to manage that money for them, especially in most of the strategies here because they all have some illiquidity built in. So, it's it's really more about building a relationship, taking the time for the LP to get to know you, building trust, and then capital absolutely flows.
But, uh, we're seeing billions and billions of dollars move after these events. And I'm when I say after, I'm talking the next 12 to 24 months. So it's it's absolutely there.
I I would not say capital is scarce at all.
When I talk to a lot of institutional investors, there seems to be this trend away from blind pool capital — Into more dealby dynamics, continuation vehicles, SPVS, etc. Sometimes really large SUVs, sometimes 300, 500,2 billion continuation vehicles. What do you think is behind that? And is this a permanent shift or is this just a lack of DPI? Today,
The reality is it's it's always difficult to raise money into a pulled vehicle because from the LP standpoint, you have to think about who else is in the vehicle. What are the rules set that that govern how this vehicle is going to function? you're definitely going to be subject to some level of a gate if it if it's investing in liquid securities like a hedge fund.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- lp relationships
- fundraising timelines
- risk versus returns
- emerging managers
- transparency and trust
Companies and tickers mentioned
- iConnections
Watch the episode
Watch “The Biggest Mistake Fund Managers Make” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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How I Invest With David Weisburd, this episode and its artwork belong to David Weisburd. Octagon is not affiliated with the show; this page is an independent summary.
