4 ms·

Is there a technical meaning when he refers to fund years as "2008 vintage" vs. just "2008"?

joncrocks 11y ago
Not beyond what you'd probably assume it to mean... http://www.investopedia.com/terms/v/vintage_year.asp http://www.investopedia.com/terms/v/vintage_year.asp
- tedmiston 11y ago
  So, the idea: is "compare this fund against others that were started in economic conditions like 2008", not say 2006 or 2012. Does that seem right?
  - taylorwc 11y ago
    Yes exactly. Like cohort analysis for venture funds. Compare them to peers that had experienced the same macro trends and conditions.
adewinter 11y ago
I suspect it's more of a pompous thing. Thinking of the funds like wines: they mature/get better with age.
- taylorwc 11y ago
  It's not really pompous. Fund 'vintage' is the way that VC firm partners (GP's) have to orient their thinking because it's how their investors (LP's) measure the success of a particular investment in their firm. The term vintage has been standard fare in this world for a long time, even if it draws its roots elsewhere... See also: 'carried interest'[0], which draws its origin from shipping centuries ago. [0] https://en.wikipedia.org/wiki/Carried_interest https://en.wikipedia.org/wiki/Carried_interest
debacle 11y ago
The fund is labeled 2008 but they invested in opportunities over the course of several years.
- zhte415 11y ago
  >The fund is labeled 2008 but they invested in opportunities over the course of several years. This is not the same term as label (vintage) with wines. A vintage of a wine is the same grape and the same year. If the grape was similar, the wine could be labelled with the type. If the grape and year are different... it seems more like a cocktail. Order a new glass for each glass of wine from a new bottle (even if the same type/brand/field) I was told by a French colleague. I didn't notice at first, but then I did. Not quite a cocktail, but close. If the fund is mislabeling itself, it is common, ask questions about why so, and if you have a 5 year exit plan while the fund has as 2008+x year exit date. You're entering a 2008 plan, marketed to investors as a 2008 plan. When 2008 +x yeas happens, which seems soon, are you just shoring it up with your idea that they will take away?
  - debacle 11y ago
    Yes, it's not the same as with wines, though many cheaper wines are more like "cocktails" in your example. The fund is not mislabeling itself. Words can mean different things in different contexts! http://www.investopedia.com/terms/v/vintage_year.asp http://www.investopedia.com/terms/v/vintage_year.asp

Not beyond what you'd probably assume it to mean... http://www.investopedia.com/terms/v/vintage_year.asp http://www.investopedia.com/terms/v/vintage_year.asp

tedmiston 11y ago
So, the idea: is "compare this fund against others that were started in economic conditions like 2008", not say 2006 or 2012. Does that seem right?
- taylorwc 11y ago
  Yes exactly. Like cohort analysis for venture funds. Compare them to peers that had experienced the same macro trends and conditions.

adewinter 11y ago

I suspect it's more of a pompous thing. Thinking of the funds like wines: they mature/get better with age.

taylorwc 11y ago
It's not really pompous. Fund 'vintage' is the way that VC firm partners (GP's) have to orient their thinking because it's how their investors (LP's) measure the success of a particular investment in their firm. The term vintage has been standard fare in this world for a long time, even if it draws its roots elsewhere... See also: 'carried interest'[0], which draws its origin from shipping centuries ago. [0] https://en.wikipedia.org/wiki/Carried_interest https://en.wikipedia.org/wiki/Carried_interest

debacle 11y ago

The fund is labeled 2008 but they invested in opportunities over the course of several years.

zhte415 11y ago
>The fund is labeled 2008 but they invested in opportunities over the course of several years. This is not the same term as label (vintage) with wines. A vintage of a wine is the same grape and the same year. If the grape was similar, the wine could be labelled with the type. If the grape and year are different... it seems more like a cocktail. Order a new glass for each glass of wine from a new bottle (even if the same type/brand/field) I was told by a French colleague. I didn't notice at first, but then I did. Not quite a cocktail, but close. If the fund is mislabeling itself, it is common, ask questions about why so, and if you have a 5 year exit plan while the fund has as 2008+x year exit date. You're entering a 2008 plan, marketed to investors as a 2008 plan. When 2008 +x yeas happens, which seems soon, are you just shoring it up with your idea that they will take away?
- debacle 11y ago
  Yes, it's not the same as with wines, though many cheaper wines are more like "cocktails" in your example. The fund is not mislabeling itself. Words can mean different things in different contexts! http://www.investopedia.com/terms/v/vintage_year.asp http://www.investopedia.com/terms/v/vintage_year.asp