In an exclusive interview with Hubbis, Heinrich Riehl, Director of Fundraising and Client Services at VenCap International plc, sheds light on how VenCap’s venture capital fund-of-funds model offers a rare opportunity for ultra-high-net-worth (UHNW) investors in Asia. As one of the world’s leading fund-of-funds specialists, VenCap provides access to an elite group of venture capital managers who consistently back the most successful startups globally.
For investors and wealth managers looking to navigate the complexities of venture capital, VenCap’s approach presents a unique gateway into this high-growth asset class. As part of its expansion into Asia, VenCap is co-hosting a thought-leadership discussion and lunch with Hubbis on Tuesday, 20th May 2025, at the Tower Club Singapore. This exclusive event will bring together senior investment professionals from multi-family offices (MFOs), external asset managers (EAMs), and private banks in Singapore to explore how venture capital can fit into sophisticated UHNW portfolios. Tim Cruttenden, CEO of VenCap, will personally attend to share insights into the firm’s investment strategy and answer questions from the region’s leading wealth managers.
Understanding VenCap’s Value Proposition
For over 35 years, VenCap has been a specialist in venture capital fund-of-funds investing, curating a concentrated portfolio of elite VC managers. Their core investment philosophy is based on a fundamental principle of venture investing: the power law—where 1% of exits generate more than 50% of the total value created by venture-backed companies globally. This means that success in venture capital is not about minimizing losses but about consistently accessing that top 1% of opportunities.
VenCap’s investment strategy focuses exclusively on these “Core Managers”—a small, highly select group of top-performing venture capitalists who have a proven track record of backing the world’s most successful technology startups. Many of these managers, are effectively closed to new investors, making VenCap’s ability to provide access a significant advantage. Notable portfolio companies invested by these leading VCs include Open AI, Space X, Anthropic, Databricks, Stripe and Mistral AI.
Why This Matters for UHNW Clients in Asia
1. Access to the Best Venture Capital Managers
UHNW investors in Asia often struggle to secure allocations in top-tier venture funds due to high entry barriers and limited availability. VenCap solves this problem by pooling capital into a fund-of-funds structure, providing exposure to a handpicked selection of managers who have historically delivered superior risk-adjusted returns.
2. Consistent Outperformance
VenCap’s Core Manager investments have consistently outperformed broader venture capital benchmarks. From 2011 to 2020, VenCap’s portfolio exceeded the Cambridge Associates US VC median benchmarks in every single vintage year and outperformed the upper quartile benchmark in 80% of vintage years. This level of consistent performance is rare in venture investing and underscores the effectiveness of VenCap’s selective approach.
3. A Proven Track Record in Multiple Market Cycles
With 1.8 billion USD in assets under management (AUM) and over 107 funds invested in since 1989, VenCap has weathered multiple market cycles. Their three-decade track record demonstrates resilience and the ability to navigate economic downturns while still capturing the most lucrative opportunities in technology investing.
4. A Structure That Mitigates Key Venture Risks
Venture capital is inherently illiquid, often requiring a 10- to 12-year investment horizon. However, VenCap has structured its funds in a way that reduces the J-curve effect, providing earlier liquidity than typical direct venture capital investments. This is achieved through its warehousing programme, which helps smooth capital deployment and accelerates early returns.
The Power Law in Venture Capital: Why It Matters
Returns in venture capital do not follow a normal distribution but instead adhere to a power law, meaning that only a tiny fraction of startups generate the majority of industry-wide profits. Historical data from VenCap underscores this trend: since 2010, the top 1% of venture-backed exits each year have accounted for 51% of total exit value globally.
Understanding this power law is critical for investors. While 70% of early-stage VC investments fail to return capital, those that do succeed can produce astronomical gains. VenCap’s strategy is built around securing allocations with managers who have a long-term track record of backing these ultra-successful companies.
This is why VenCap’s Core Manager Strategy is so compelling—it ensures that investors have a consistent exposure to the managers who are most likely to identify and support the next unicorns. The barriers to entry for direct investment in these top-tier managers are extremely high, making fund-of-funds structures like VenCap’s one of the most viable options for UHNW clients looking to participate in venture capital.
VenCap’s Expansion into Asia
While VenCap’s client base has historically been European, the firm has recognized the growing appetite for venture capital among Asian UHNW investors. With substantial wealth creation occurring in Asia, Singapore has been chosen as the hub for its regional operations. VenCap is actively engaging with leading private banks, multi-family offices, and investment advisers who can connect them with sophisticated investors in the region.
“Our goal is to build long-term partnerships with the right intermediaries—MFOs, EAMs, and private banks—that truly understand the nuances of venture investing,” says Heinrich Riehl, Director of Fundraising and Client Services at VenCap. “This is not about high-risk speculation; it’s about institutional-quality access to the most successful VC firms in the world.”
VenCap’s expansion into Asia is strategic, leveraging Singapore’s status as a financial hub to establish relationships with key decision-makers. As the region continues to see a rise in UHNW individuals interested in alternative investments, VenCap is positioning itself as the premier gateway to top-tier venture capital.
Attractive Yet Difficult Asset Class
Venture capital remains one of the most attractive yet difficult asset classes to access for UHNW investors. VenCap’s exclusive relationships with top-tier VC managers, combined with its three-decade track record, make it a unique and highly attractive proposition for those looking to capture the upside of the world’s most innovative companies while mitigating key venture risks.
For private wealth managers in Asia, understanding how to integrate this strategy into client portfolios is crucial. VenCap’s upcoming event in Singapore provides a valuable opportunity for investment professionals to learn how they can offer their UHNW clients exposure to elite venture capital opportunities that would otherwise be out of reach.
For those looking to enhance their wealth management offerings with venture capital, VenCap represents a best-in-class solution—combining access, expertise, and a history of strong performance.
Event Details:
- Date: Tuesday, 20th May 2025
- Time: 12.15pm – 2.00pm
- Venue: Boardroom, Tower Club Singapore, 9 Raffles Place, Tower 1, 62nd – 64th Floors, Republic Plaza, Singapore.
To learn more or to secure an invitation, CLICK HERE.
