Episode 22 - Inside the Mind of an LP: Morgan Creek’s Frank on Backing Key-node VCs, and Power Laws
In this episode of the Advancing VC Podcast, we sit down with Frank, Director at Morgan Creek Capital, for an expansive and transparent look into one of the most experienced fund-of-funds perspectives in early-stage venture capital. With over two decades of experience and a track record of backing fund managers from their first check through fund nine, Frank offers rare insights into what it takes to build, scale, and sustain a successful VC franchise from the LP lens.
We unpack Morgan Creek’s data-backed, high-conviction strategy in early-stage venture — including their 5S underwriting framework: Source, Select, Secure, Support, and Signal. Frank explains how this model helps identify “key-node” managers—VCs who shape markets and attract downstream capital. He also shares how Morgan Creek thinks about power-law returns, solo GPs, co-investments, and portfolio construction, offering practical benchmarks on ownership, reserves, and fund return expectations.
Listeners will gain a unique understanding of how Morgan Creek blends relationship-driven diligence with long-term discipline to uncover breakout managers early and ride with them through inflection points. We discuss why they don’t focus on percent ownership like most LPs, how they approach vintage diversification, and the LPAC dynamics they prefer. Frank also addresses common fundraising challenges on both sides of the LP/GP table—and why LPs need to be just as thoughtful, intentional, and persistent as the GPs they back.
As the episode progresses, we also tackle pressing questions about the rise of AI, the bifurcation in venture fund sizes, and the evolving role of solo GPs in the VC ecosystem. Frank offers grounded advice to emerging managers navigating today's environment and emphasizes the importance of introspection, conviction, and purpose in building enduring venture franchises.
Whether you're a GP raising your first or fifth fund, an LP looking to sharpen your underwriting, or simply passionate about the dynamics of venture capital, this episode is a must-listen.
Tune in to learn:
- Why Morgan Creek focuses on fund return over ownership %
- How power-law thinking shapes fund-of-fund portfolio construction
- What the 5S framework reveals about manager quality and potential
- How solo GPs can generate signal and outsized outcomes
- Why reserve strategy varies drastically by fund size and stage
- The importance of continuity, conviction, and clarity for long-term LP/GP relationships
- How AI is reshaping value creation and the role of early-stage capital
Subscribe now for a candid and insightful conversation with a leading LP investing at the frontier of early-stage venture capital.
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