Manager Selection Spread
In public markets, manager selection adds or subtracts a few percentage points. In private markets, the spread between top and bottom quartile managers can exceed 50 points of IRR. The manager you choose matters more than the asset class you pick.
A $100K commitment to a top-quartile VC fund could return $500K+ over 10 years. The same commitment to a bottom-quartile fund could lose principal. This is not a marginal difference — it is the entire investment thesis for manager selection.
Quartile boundaries shift year to year — these are aggregate ranges
Venture capital shows the widest dispersion of any private market strategy
A fund-of-funds structure provides exposure across multiple managers to manage this dispersion
IRR dispersion data is sourced from Harris, Jenkinson, Kaplan & Stucke. Historical spreads reflect past performance across sampled funds and do not predict future manager performance. Quartile rankings change across vintages and strategies. Manager selection outcomes are not guaranteed.
Esinli Capital is not a registered investment adviser, broker-dealer, or member of FINRA or SIPC. Nothing on this page constitutes investment advice, tax advice, or a recommendation to buy or sell any security. All inputs are illustrative. All outputs are estimates based on simplified models. Consult a qualified financial advisor before making investment decisions.