E167: The Hardest Questions Limited Partners Ask GPs w/Stepstone’s Hunter Somerville

Hunter Somerville helps allocate billions of dollars across venture capital at StepStone—and he’s one of the most thoughtful LPs I’ve ever met. In this episode of How I Invest, Hunter gives us a rare look into how top institutional investors evaluate funds, pick managers, and underwrite spinouts before they even happen. We go deep on what separates the best emerging managers from the rest, how LPs think about performance before DPI, and why some GPs win repeatedly while others fade. Hunter also shares his own personal playbook—from how he manages his time to the biggest lessons he’s learned over two decades in venture. If you're raising a fund, building a firm, or just curious about how top LPs think, this one is a must-listen. Highlights: The biggest myths about emerging managers—and what actually gets them funded Why DPI and TVPI can be misleading, and how great LPs evaluate funds pre-liquidity What LPs really think about spinouts—and how they prepare for them in advance How to stand out as a fund manager (hint: it’s not just about performance) Hunter’s framework for attribution, sourcing, and “right to win” What makes an LP want to be your first check—and why StepStone often plays that role Behind the scenes of StepStone’s secondaries, direct investing, and micro growth strategy How Hunter structures his calendar for maximum leverage—and why he believes in being “obsessively systematized” -- Guest Bio: Hunter Somerville is a Partner at StepStone Group, one of the largest institutional investors in venture and growth equity. He leads investments across hundreds of funds, directs, and secondaries, and helps back many of the best emerging and established managers in the world. Hunter is known for his deep pattern recognition, clarity of thought, and a relentless work ethic that shows in everything he does. Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com . #VentureCapital #VC #Startups #OpenLP #AssetManagement -- Stay Connected: X / Twitter: David Weisburd: @dweisburd LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Hunter Somerville: https://www.linkedin.com/in/hunter-somerville-2a24117/ Links StepStone Group: https://www.linkedin.com/company/stepstone-group/ -- Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com . (0:00) Episode preview (0:42) Fundraising market and LP exposure for emerging managers (2:33) Challenges and indexing venture for mid-level emerging managers (5:08) Tracking attribution, performance, and manager skill indicators (9:41) Valuation policies, game theory, and impacts on investments (12:24) Building successful investment firms and reserve strategies (18:18) Deal attribution and components of sourcing in firms (23:32) The impact of brand and right to win at various fund stages (28:42) Differentiation strategies for venture funds (32:32) Current state and evolution of StepStone's venture practice (38:11) Incorporating AI and technology in investment management (42:23) Building and evolving relationships with investment funds (44:20) Strategies for managing a busy calendar and prioritizing tasks (47:11) Mentorship, personal growth, and career reflections (51:01) Trust and reverse references in large investment transactions (54:21) Ego, selling yourself, and StepStone's ecosystem approach (55:59) Aligning incentives and culture in organizational growth (57:07) Closing remarks