What are the hallmarks of alpha? Great inefficiency and smaller size. You want to be fishing in a nice little pond with nobody else around versus having these big haulers with nets next to you. You probably are in some deals where you don’t have a lot of competition. And you can take a closer look at the company and be a little bit more thoughtful and have a bigger say in terms of covenants and protections. And I think these all yield better outcomes to the end investor. With venture debt, you get some yield, which de-risks the portfolio and the holding early on. Oftentimes, there’s some conversion features so you get a little bit of an equity play as well.
Great inefficiency and smaller size
