Nomi Capital's Unique Approach to SPV Investing
Nov 21, 2024
Gavin Freeman
Jason Zins, founder of Nomi Capital, has deep experience in sourcing, structuring, and executing complex private markets transactions, in addition to fundraising for co-investment deals. He previously worked at multi-billion dollar alternative investment firms gaining expertise in sophisticated financial structures across various asset classes. This extensive background enables him to strategically use SPVs alongside dedicated capital pools, aligning with the diverse investment needs of RIAs, family offices, and high-net-worth investors at Nomi.
Early Beginnings
Jason launched the venture business as a Partner at a prior firm in 2020, starting with SPVs and ultimately deploying over $400 million in single-asset investments, including significant names like Chime, Klarna, and Plaid. Jason then decided to go out on his own and start Nomi Capital earlier this year.
Given the lack of IPOs and M&A activity, there has been limited capital returned to LPs in recent years. This has resulted in a challenging fundraising environment, especially for emerging managers. Because of this, Jason saw an opportunity to use SPVs to make focused investments rather than spending 6-12 months trying to raise a traditional fund.
Additionally, Jason's deep understanding of his investor base, especially RIAs and other wealth managers, allows him to tailor his strategies to their preferences. He focuses on delivering growth and late-stage, lower-risk, and more liquid opportunities as opposed to early-stage venture. He can also be creative in structuring SPVs or funds catered to the needs of his clients.
Fund vs. SPV: A Tactical Choice
At Nomi Capital, Jason utilizes both funds and SPVs, but with a nuanced strategy. While funds allow for quicker deployment of capital, SPVs allow him to match investor interest in specific companies and can offer a shorter path to liquidity which is especially attractive in the current market.
When it comes to funds, he focuses more on custom, nimbler vehicles on behalf of specific clients, including RIAs and family offices. This can require a little more work upfront, but a dedicated capital pool allows for more efficient deployment and can also help streamline the co-investment process.
Efficient Capital Deployment through SPVs
Jason uses a unique model in which he creates custom vehicles for the RIAs that he partners with. These vehicles are exclusively tailored for the RIAs' clients, designed to align with specific liquidity profiles, investment stages, and sectors. This enables him to make capital deployment more efficient by writing checks from dedicated capital pools directly into SPVs while also allowing his clients to double down into a co-investment alongside of the fund.
RIAs appreciate this model because they can offer white-labeled investment opportunities to their clients. Additionally, Jason offers discounted co-investment fees in these custom funds, reducing costs for the RIAs.
Sydecar: A Game-Changer for Venture Capital Operations
Jason has leveraged Sydecar's platform to manage the operational complexities of Nomi Capital’s SPVs. Sydecar’s automation capabilities allow him to efficiently handle back-office operations, turning his focus fully toward investment opportunities and investor relations. Our platform enables Jason to launch an investment vehicle with an integrated bank account in a few hours and deploy capital as soon as his investors have signed and wired. Also, the majority of Sydecar’s KYC checks happen directly within the platform, allowing Jason and his investors to handle this step with just a few button clicks.
Future Outlook and Strategic Positioning
As Nomi Capital continues to grow under Jason's leadership, the firm remains focused on SPVs but plans to adapt to evolving market conditions and investor preferences. Jason's ability to combine smart strategy with efficient management makes Nomi Capital a notable player in the venture capital space, particularly for investors looking for tailored, liquid, and lower-risk investment opportunities.
Jason Zins and Nomi Capital exemplify the innovative and investor-centric approaches that define success in today’s venture capital environment. With tools like Sydecar, they stay competitive, quickly and cost-effectively capitalizing on new opportunities. To learn more about how Sydecar helps emerging managers like Jason, visit our emerging managers page:
