Backing Emerging Managers Before They're Brand Names with Courtney McCrea of Recast Capital

Courtney McCrea is the Cofounder and Managing Partner of Recast Capital. Courtney and I dove into the intricacies of investing in emerging managers and building those firms. We talked about why Courtney is so enthusiastic about emerging managers, the challenges emerging managers face and how to overcome them, how LPs can better evaluate emerging managers, and why LPs aren’t racing to adopt AI as fast as their VCs.

The episode is now available on Apple Podcasts, Spotify, Amazon, and YouTube Music.

Backing Emerging Managers Before They're Brand Names with Courtney McCrea of Recast Capital

• 00:00 — Why emerging managers (and why now)

• 09:30 — LP diligence that matters: references, risk, and “fatal flaws”

• 16:54 — Pods + productized support: reducing the loneliness of Fund I

• 20:58 — Underwriting manager risk: solo GP vs partnership divorce

• 25:05 — Fundraising timelines + breaking the Fund I chicken-and-egg

• 33:33 — SPVs vs opportunity funds (and incentives LPs watch for)

• 35:38 — AI, shared services, and the future of emerging manager infrastructure

• 41:15 — A VC belief Courtney disagrees with: “always double down on winners”

• 43:13 — How to connect with Recast + closing thoughts

Chapters from Gritty Founders, Weird Markets, and Vertical AI with Dan Teran of Gutter Capital

• Why emerging managers can outperform: Courtney McCrea explains why Fund I / Fund II managers can be the most aligned with LPs—scrappier, hungrier, and often running “right-sized” funds that can drive better outcomes than “fat and happy” brand-name firms.

• Recast’s mission: “productizing” LP value-add: Courtney breaks down how Recast turns institutional LP pattern recognition (what great decks, positioning, and processes look like) into structured support—so emerging managers can run a more effective, less lonely fundraising process.

• A pragmatic view on diligence (and why 50 reference calls is usually theater): Courtney lays out her approach to VC fund diligence—separating confirmatory calls from deeper risk-killing investigation—and why “quality of references” beats raw volume.

• How to find the “fatal flaw” faster: She shares a simple but powerful diligence framework: write down why you like the fund, write down the risks, then spend your time hunting the few issues that could truly kill the deal.

• Reading between the lines on GP references: Courtney describes a subtle tactic: compare tone and enthusiasm when a reference discusses different board members/managers—often the signal is in how they talk, not just what they say.

• Community as a moat: the “pods” model for emerging managers: Recast builds small peer cohorts (“pods”) inspired by Kauffman-style community design—structured commitments, then autonomy—so managers can trade tactics and survive the emotional load of fundraising.

• Solo GP risk vs. partnership divorce (the surprising answer): Joe and Courtney dig into “hit-by-a-bus risk” vs. co-founder breakups—and Courtney shares her anecdotal view after working with ~160 managers: partnership divorces show up far more often.

• Fundraising reality: it takes the time it takes: Courtney gives a candid take on fundraising timelines—unless you have rockstar performance, many closes simply won’t compress, and late commitments often wouldn’t have happened earlier.

• Breaking the chicken-and-egg for Fund I: Her advice for first-time managers who lack “proof”: start building evidence of access and picking (even with small checks), get CEO references, and don’t over-optimize for “brand name LPs” too early.

• Portfolio construction contrarianism: Courtney challenges a popular venture mantra—always putting more money into your biggest winners—and argues it depends on fund size, pacing, and whether follow-ons actually improve outcomes vs. diluting multiples at higher prices.

The content here is for informational purposes only and should not be construed as investment, legal or tax advice. The opinions expressed by guests are their own and do not reflect the views of Seaplane Ventures. Our host, guests and clients may hold investments discussed in this podcast. Please invest responsibly.