Courtney McCrea is the Cofounder and Managing Partner of Recast Capital. Courtney and I dove into the intricacies of investing in emerging managers and building those firms. We talked about why Courtney is so enthusiastic about emerging managers, the challenges emerging managers face and how to overcome them, how LPs can better evaluate emerging managers, and why LPs aren’t racing to adopt AI as fast as their VCs.

We also discussed:

How LPs really evaluate first-time fund managers: beyond pedigree, what creates conviction in sourcing, selection, and portfolio construction.

Fund I fundraising strategy: why “spray-and-pray” outreach fails—and how to identify the right-fit LPs instead of chasing every allocator.

Where to start if you’re raising your first venture fund: go “off the beaten path” rather than leading with mega-institutions and public pensions.

LP diligence that actually matters: Courtney’s framework for reference calls, risk lists, and finding the “fatal flaw” early.

Solo GP vs partnership risk: why “GP divorce” can be a bigger underwriting risk than the classic “hit-by-a-bus” concern.

AI in the LP workflow: what Courtney is seeing (and experimenting with) in diligence and decision-making as venture processes modernize.

Joe Magyer is the host of Investing in Startups, which is a Seaplane Ventures production.

E48: Backing Emerging Managers Before They're Brand Names with Courtney McCrea