This week on Swimming with Allocators, growth-investor-turned-LP Yuri Lee (TMRS) joins Earnest and Alexa and explains how her global upbringing and love of technology shaped her investing philosophy and belief that talent can come from anywhere. She walks through TMRS’s $3B and growing venture/growth mandate, how they split exposure between early-stage and multi-stage funds, and why they are building an aggressive 50/50 funds and co-investment program. Yuri shares what she looks for in emerging managers in clear, differentiated edge in sourcing, picking, or winning; true product–market fit between a manager’s edge and fund strategy; and non-consensus, outlier ideas. Throughout, she offers candid advice on how GPs can better pitch institutional LPs, why most decks sound the same, and what it really takes to stand out in a consensus-heavy, AI-dominated market. Also, Chuck Daly of Sidley talks about how emerging VC managers should think proactively about compliance, conflicts of interest, disclosure, and performance/marketing practices under (and aligned with) the Advisers Act and SEC’s marketing rule principles.

Highlights from this week’s conversation include:

How a Global Upbringing Shapes an Investor’s Worldview (0:13)
Consumer Investing and Game Development Experience (2:22)
Market Cycles in SaaS and Consumer Narratives (4:19)
TMRS Mandate and Building a New Venture Program (6:16)
Early Stage Managers and Differentiated, Non-Consensus Portfolios (9:20)
What Matters Most at Early Stage vs Growth Stage (12:08)
What LPs Really Want to Hear About: Companies and Decisions (14:11)
How Pensions and Institutional LPs Run Diligence (17:04)
Managing Portfolio Company Synergies and Conflicts (23:56)
Marketing Rule Principles, Performance, and Case Studies (26:21)
Why TMRS Uses Co-Invests and Target Mix With Funds (30:15)
Barbell Approach: Early Stage Funds and Later Stage Co Invests (32:02)
Information Gaps for LPs vs GPs and Founder Access (35:55)
Consensus Rounds, Party Rounds, and Manager Profiles (38:56)
Role of Non-Consensus Managers and Unique Edges (42:09)
Rethinking AI Thesis and Value Capture by Model Labs (43:22)
Advice For GPs Moving to LP Roles and Building Empathy (45:20)
Final Thoughts and Takeaways (47:18)

The Texas Municipal Retirement System is a $48+ billion public pension plan serving employees of participating Texas cities. TMRS invests across a diversified portfolio including public equities, fixed income, real assets, and private equity, with venture and growth investments forming an important component of its private markets strategy.

Sidley Austin LLP is a premier global law firm with a dedicated Venture Funds practice, advising top venture capital firms, institutional investors, and private equity sponsors on fund formation, investment structuring, and regulatory compliance. With deep expertise across private markets, Sidley provides strategic legal counsel to help funds scale effectively. Learn more at sidley.com.

Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies.

The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.

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