How I Invest with David Weisburd

Episode 201: Top 10 Things LPs Look for in a General Partner — with Matt Curtolo

Date: August 18, 2025

Episode Overview

In this episode, David Weisburd sits down with veteran investor Matt Curtolo, whose career spans two decades at top limited partner (LP) institutions including Hamilton Lane, MetLife, and Hurdle Callahan. Together, they unravel what LPs really look for in a general partner (GP), drawing from experiences across institutional asset management, consulting, and OCIO (outsourced chief investment officer) platforms. The conversation merges practical advice, inside stories, and hard-earned wisdom—making it a must-listen for GPs, LPs, and anyone seeking to understand the relationship dynamics in private markets.

Key Discussion Points & Insights

Early Experience at Hamilton Lane: Shaping an Investor

• Building a Foundation: Matt shares the formative impact of joining Hamilton Lane when it was a boutique (only ~50 people in 2004), highlighting the value of end-to-end exposure and latitude in a rapidly growing firm.
• Learning by Stubbing Toes: Immersed early in roles he "had no business being in," Matt credits this challenging environment for shaping his investment approach.

  "As a young professional, I stubbed my toe a ton. But it was an incredible learning environment. Those challenges... built me into the investor that I am today." (01:03)

LP Skillsets: More Than Just Picking Funds

• Mission and Mindset: Elite LPs are mission-driven, balancing fiduciary duty with partnership mentality and strategic execution.

  "The best LPs are the ones who understand their position in the market, understand the mission that they're trying to achieve... and being able to execute that in a pretty clean way." (01:32)

• EQ vs. IQ: At iconic endowments like Yale, emotional intelligence, diplomacy, and navigating communities are as valuable as technical analysis.

  "The EQ part is what's going to differentiate very smart LPs from elite LPs... connecting with constituents and the investor base." (03:03)

Creating Win-Win Ecosystems & Community Diligence

• Beyond Zero-Sum: Citing David Swensen’s legacy, LPs who provide value to GPs and co-investors—and create ecosystems—drive positive-sum outcomes.
• The Power of Peer Networks: Constant flow of idea-sharing, WhatsApp/Slack groups, and leveraging community for both opportunity sourcing and diligence.

  "Nobody is smarter than everybody." (06:00)

• Crowd Wisdom’s Value: The duo discuss how community-driven referencing and due diligence often outperform individual evaluation, with Weisburd noting the accuracy of crowd answers in "Who Wants to Be a Millionaire" (UK: 91–95%, US: 95%) as an analogy. (07:48)

Diligence, References, and the Role of Intuition

• Reps Matter: Junior team members should observe seasoned investors conducting reference calls, learning what to listen for—including subtleties, hesitations, and unscripted feedback.

  "Understanding what you’re listening for, crafting the right questions and listening to say, okay, did they hesitate? Did they use certain words?" (08:40)

• Reference Calls Are EQ-Heavy: Most on-sheet references are positive; off-sheet and deep digging are where insights emerge.
• Gut vs. Consensus in Decision-Making: Not every decision has obvious positives or negatives—sometimes, lacking a "hell yes" is reason for a "no."

  "If it’s 99% out, it’s 100% in... You need to be 100% of the way there." (11:15)

• Asymmetric Upside and Downside: LPs must parse between unease about ‘box-ticking, but uninspiring’ managers versus conviction on unproven, high-upside GPs. (12:00)

Risk, Incentives, and the Conservatism Bug

• Risk Appetite Should Match Diversification: In theory, LPs should be more risk-tolerant than GPs given embedded diversification, but in reality, career incentives skew conservative.

  "If there's not a benefit to putting your neck out... there's not really that motivation other than finding something new and interesting." (14:26)

• Job Preservation vs. Return Maximization: Compensation and organizational structures encourage safety—“you don’t get fired for buying IBM." (15:36)
• Characteristics of Trailblazing LPs: Willingness to supersede incentives occurs more in institutions with robust governance and talent-aligned cultures.

  "Most of these funds are not going to lose money... LPs need to frame it as, where are we in our journey as an institution?" (17:37)

Governance and Long-Term Games

• The Cost of Poor Governance: Frequent turnover among public pension CIOs (~6-year average)—usually driven by "avoiding the stick"—turns away the best talent and hinders excellence. (20:36)
• Institutional Cultures That Attract Talent: Organizations willing to reward conviction bets—and that judge outcomes over multi-year cycles—tend to accrue top talent.

Institutional Size: Advantages and Challenges

• Big vs. Small Institutions:
  • Large Institutions: Less nimble but can demand bespoke structures (e.g. separate accounts, fee breaks, “best ideas” portfolios).

  "You can go to a large manager... and create a Best ideas portfolio." (22:10)

  • Small/Mid-Sized: More access to emerging managers, agility for alpha, but less scale for negotiation.

  "The model is to aggregate even smaller investors and look and feel like a $20 billion institution... you could still do the small things that were interesting." (38:08)

• Optimal LP Size: $1–5B can have enough heft for access, while retaining flexibility for alpha generation. (40:06)

Co-Investment Programs: Best Practices

• Clarity and Process:
  • Clear strategy for co-investing
  • Streamlined processes—respecting GP timelines and providing quick, transparent feedback.

  "Every LP raises their hand and says they want co-investment... You just need to streamline that in a way that works for the GP and for you." (26:08)

• Evaluating Opportunities:
  • Sponsor review (“Are you investing behind the right partner?”)
  • Timing within fund life (early vs. late co-investment deals)
  • Who else is co-investing
• Conviction Signals: Beyond formal metrics, real conviction comes out in 1:1 conversations and by knowing GP’s deal cadence over time.

  "Having that conversation and knowing enough about the rest of that portfolio... why is this better, why is this different?" (30:21)

• Pick Your Horses: Go deep with a small set of managers—build relationship “mosaics” and understand what co-investment flow really indicates. (31:42)

The Intangibles: Partnership and Character

• Qualitative Filters: Matt heavily weighs partnership mentality, responsiveness, and long-term attitude over pure returns.

  "If I'm questioning the character of a person or their ability to be a partner, I'm not sure I can tease that out in references... those are things that kind of stick." (45:57)

• Long-Term Residuals: Treating people well (even junior or unsuccessful) can pay reputational dividends decades later.

  "[Marc Andreessen] gave me so much of his attention... That endeared so much loyalty in me for the rest of my career." (44:53)

• People First as Tiebreaker: In a world of similar quantifiable results, integrity and partnership tip the scales.

GP Perspectives: Why Great Managers Sometimes Fail to Raise

• Mismatch in Messaging: Many GPs overemphasize being "unique" and "proprietary"—buzzwords that signal overconfidence or lack of context to experienced LPs.

  "It's not about being different in my mind, it's about being authentic and being better." (54:20)

• Self-Awareness and Humility: The very best also acknowledge how difficult fund launches are—combining confident self-promotion with humility.

  "This industry humbles you... if you go in with the idea that yes, I know this is going to be hard... that's the mentality." (58:22)

• The Ten-Year Razor: Only pursue fund management (or any major commitment) if you’re willing to do it for the long haul—there’s virtue in quitting quickly if you’re not.

  "Do I want to do this for 10 years? Because if you commit to something for 10 years, you will be world class..." (60:13)

Advising Emerging LPs and GPs

• Zero to One Moments: Curtolo specializes in coaching both sides on institutionalizing, improving process, and building the right frameworks.
  • Emerging LPs: Often understaffed but self-aware, seeking "adult supervision" and best practices across ODD, diligence, and governance. (64:53)
  • Emerging GPs: Need feedback loops, calibration against ultra-high standards, and tailored storytelling to LPs.
• Mutual Selection & Authenticity: Matt shares his approach of “thinking in public,” providing value up front, and letting authentic matches self-select.

Notable Quotes & Memorable Moments

• On Peer Diligence: "I always use the phrase nobody is smarter than everybody." — Matt Curtolo, 06:00
• On Governance: "It's often a lot more avoiding the stick than it is the carrot." — Matt Curtolo, 20:36
• On Reference Calls: "Most references end up being positive. The on-sheet references, we all know this." — Matt Curtolo, 09:00
• On Choosing Managers: "If it’s 99% out, it’s 100% in." — Matt Curtolo, 11:15
• On Partnership: "You’re investing in people and what they're building... What is the long-term nature of this?" — Matt Curtolo, 43:11
• On GP Fundraising: "In this market, you have to articulate that so people will understand what’s happening and why you’re positioned in a way that you deserve capital." — Matt Curtolo, 58:22
• On Self-Selection: "You kiss a lot of frogs... Six years ago, I started thinking in public, writing a lot... There’s this concept of authenticity." — Matt Curtolo, 66:39
• On Kingmaking: "[What if] they’re not only a good steward of capital, but this is a humble person. This is somebody that checks their ego. Those are the kind of people you want to be the next billionaires." — David Weisburd, 48:04

Timestamps for Important Segments

• [01:26] — Key LP skills: EQ vs. IQ for elite LPs
• [04:50] — Building positive LP-GP ecosystems
• [06:48] — Risks and limits of crowd diligence, referencing as skill
• [10:47] — The role of intuition and "hell yes" test
• [12:37] — Asymmetry in upside/downside LP bets
• [14:17] — LP incentives, misaligned risk appetites
• [20:36] — Tenure, governance, and attracting talent
• [22:10] — Advantages of large institutions
• [25:46] — How to run best-in-class co-investor programs
• [27:58] — Evaluating co-investment opportunities
• [43:11] — Why partnership mentality matters
• [45:57] — Intangibles as tiebreakers: people first
• [49:05] — Building new asset managers: humility, gratitude, kingmaking
• [54:20] — Why promising GPs sometimes can’t raise
• [60:13] — Ten-year razor: choosing what to commit to for the long haul
• [64:53] — Coaching emerging LPs: humility and help
• [66:39] — Authentic signaling, self-selecting for the right partners

Takeaways

• Elite LPs marry technical diligence with emotional intelligence and partnership mentality.
• References, community diligence, and deep relationships matter more than formal processes.
• Transparency of process, decision speed, and communication are marks of an LP (and GP) that top-tier partners want to work with.
• Long-term, positive-sum partnership dynamics ultimately outperform transactional relationships—both in returns and in talent attraction.
• There is value—and virtue—in self-reflection, quitting early if the 10-year path doesn’t fit, and in guiding others with authenticity and humility.

This episode is packed with both principle-driven insights and tactical advice, offering a masterclass in the art (and science) of LP-GP relationship building.