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jon hallett

Independent Board Advisor at Katalon Studio

Highlights

Mar 26 · linkedin

Lot of individuals and "part-time funds" out there syndicating SPVs for "hot" secondaries of well known start-ups (think: Neuralink, Kraken, Anhtropic, Stripe). Often with very little (or no) business diligence, no transparency on structure, negligible visibility into underlying company economics, etc. -- yet, they sure include high fees back to the syndicators (who often have zero skin in the game but claim meaningful upside in carry and downside in fees). Investors will suffer in many of these deals because they can't validate the capital preference structure, the unit economics, the complex fee arrangements, and so on. The point is that the company may be a highly successful one, but that doesn't mean the transaction is a good one for the buyer. If you are interested in purchasing secondary shares, Charles Patton, CFA does a good job with this primer on the overall market. My belief is it is better to back professional Funds that source, diligence, and manage secondary opportunities. For investor bank accounts, this approach should work far better than chasing high-fee moonlighters. Yes, maybe more boring, but probably smarter.

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jon hallett
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Experience

Independent Board Advisor at Katalon Studio
Board Advisor at Future Motion

Education

Bachelor Of Science In Engineering, Lehigh University

Location

Atlanta, Georgia, United States