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Leaders Fund I

A. Overview​

AttributeDetails
Fund Size€200 million
Target Deployment15–20 top 3% emerging managers (Fund II–III stage)
Portfolio Companies~2,500 underlying companies
Management CompanyInfra One DE Management GmbH (Germany)

B. Target portfolio companies​

Allocator One's Leaders Fund backs Fund II–III managers with proven track records. These GPs have already demonstrated ability to pick winners in Fund I and are now scaling. Target sectors:

  • AI / ML Infrastructure (30–40%)
  • Enterprise Software (20–25%)
  • Climate Tech (10–15%)
  • Fintech / Web3 (10–15%)
  • Biotech / Deep Tech (10–15%)

C. Valuation & performance drivers​

Admission criteria (top 3% of funds reviewed):

  • Fund I successful exits (≥3 unicorns or 8x+ MOIC)
  • Institutional LP backing (Tier 1 LPs in Fund I)
  • Market access (founders, co-investors, industry connections)
  • Thesis clarity and conviction
  • Team stability and partner dynamics

Performance assumptions (base case):

  • 35% of invested capital in companies achieving 3–5x MOIC
  • 40% of capital in companies achieving 1.5–3x MOIC
  • 15% of capital achieving breakeven to 1.5x MOIC
  • 10% of capital in losses
  • Blended gross portfolio MOIC: 3.67x
  • Net MOIC to LP (after 2/20 fees): 2.94x
  • Net IRR: 20%

D. Institutional validation: Emerging manager outperformance​

The strategy of backing emerging Fund II/III managers is validated by leading institutional investors:

"In 2023, CalPERS announced a $1 billion commitment to identify and support the next generation of investor entrepreneurs in private markets... We want to establish an ecosystem that helps emerging and diverse firms mitigate risk, unlock alpha, accelerate growth, and provide risk-adjusted returns." — CalPERS Emerging Manager Program Source: https://www.calpers.ca.gov/investments/sustainable-investments-program/emerging-diverse-manager-program

"In spite of the risks, the University benefited enormously from the close relationships forged with organizations that Yale essentially put in the institutional funds management business. Yale played a lead investor role for sixteen real assets managers since 1990, all but one of which still manage assets for the University's portfolio today." — David Swensen, Yale Endowment

"Analysis of 30 years of VC vintages shows that funds under $150 million outperformed larger funds in 19 of 30 vintages from 1981–2010. Emerging and smaller funds appear disproportionately in the top performance quartiles." — Cambridge Associates

"Among the large VC funds in its portfolio, only 4 of 30 funds over $400 million beat a public small-cap benchmark. No fund over $500 million returned more than 2x net to LPs." — Kauffman Foundation, "We Have Met the Enemy and He Is Us" (2012) Source: https://www.kauffman.org/resources/entrepreneurship-policy-digest/we-have-met-the-enemy-and-he-is-us/

"The best first- and second-time Venture Capital funds have historically outperformed established VC managers. They are often 'hungrier' and exploit a market opportunity with a unique investment thesis." — The VC Factory, "Emerging VCs: Selection Through Mindset" Source: https://thevcfactory.com/report-emerging-vcs/

"Studies have also shown first-time venture funds outperformed veteran funds by an average of 4% in IRR! Collaborating with emerging VC managers has the advantage, that these deliver higher returns than mature VC managers as they are more 'hungry' and dynamic." — Miruna-Ioana Girtu, Family Office Investor Source: https://www.linkedin.com/posts/mirunagirtu_emerging-vc-managers-a-family-office-perspective-activity-7269613889871396865-kCld

"We think the median returns in the mid-cap and smaller part of the market will be better than in the larger. Funds focusing on smaller acquisitions have access to a broader range of potential targets and more exit strategies." — Tony Tutrone, Neuberger Berman (Financial Times) Source: https://www.ft.com/content/7a8ea1ea-1be4-4c2d-a6df-7525430243cb

E. Economics​

Management Fee:

  • 2.0% on committed capital during investment period (Years 1–3)
  • 2.0% on net invested capital during harvest period (Years 4–10)
  • No reversion to AUM after fund closure

Carried Interest:

  • 20% on profits above 1.0x return threshold
  • Waterfall: Distributions to LP capital first; carry only on gains above return of capital
  • No clawback provision (standard market terms)

Anchor Benefits (€30M+ commitments):

  • 10% of available carried interest (capped at €80M total; above €80M, carry allocated aliquot)
  • Expansion right: If fund scales to €250M–€300M, anchors may maintain up to 20% ownership without catch-up fees

Fee Stacking:

  • None. Single 2/20 layer. No additional fund-of-funds or GP layer.

F. Capital call schedule​

  1. November 2025: 1/3 of commitment (~3-4 months from PPM date)
  2. Q2 2026: 1/3 of commitment (~6-7 months)
  3. Q2 2027: 1/3 of commitment (~18 months)

Drawdown timing: Flexible deployment over 3-year investment period; no forced draw penalties if GP unable to deploy on schedule.

G. Return scenarios​

ScenarioAssumptionGross MOICNet DPINet IRR
Conservative2.0x portfolio MOIC; 30% dry powder2.70x2.24x18%
Base3.0x portfolio MOIC; 20% dry powder3.67x2.94x20%
Target4.0x portfolio MOIC; 15% dry powder4.30x3.39x24%

Sensitivity drivers:

  • Add/subtract 0.5x portfolio MOIC = ±250bps to LP IRR
  • Exit timing variation ±2 years = ±200bps to LP IRR
  • Fee variation ±50bps = ±20bps to LP IRR

H. Governance & reporting​

Fund Governance:

  • Annual LPAC meeting (optional for Investors <€30M)
  • Quarterly unaudited NAV reporting
  • Annual audited financial statements
  • Transparency on capital calls, distributions, and portfolio mark-ups

LP Rights:

  • Observer rights on LPAC (for €30M+ anchors)
  • Information rights (quarterly reporting, access to data room)
  • Co-investment rights (opportunities surfaced to anchors to invest alongside fund)
  • Secondary liquidity rights (if secondary markets develop)

I. Risk factors​

  • Concentration Risk: Fund commits to 15–20 managers; loss of any single top performer reduces overall returns.
  • Manager Risk: GP performance is contingent on portfolio GP execution; limited ability to remove underperforming managers mid-fund.
  • Valuation Risk: Underlying companies valued by each GP independently; no fair value hierarchy across portfolio.
  • Liquidity Risk: 10–12 year expected holding period; no secondary market or redemption rights.
  • Regulatory Risk: Changes to RAIF/SCSp regulations in Luxembourg could alter fund operations or tax treatment.

J. Investor documents​

Access fund documents, due diligence materials, and supporting documentation below.

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K. Ask questions about this fund​

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