#193: Chris Pate - Managing Director of True North Advisors | A Masterclass in Capital Allocation

Chris Pate, Managing Director of independent wealth management firm True North Advisors, spent the first 11 years of his career at a multi-strategy hedge fund. Prior to True North Advisors, Chris spent 8 years managing the investment activities for Western Commerce Group in Fort Worth. Chris oversaw both public markets and private investments within Western’s investment advisory operations, including equities, fixed income, alternatives, and hard assets. 

On this episode, they discuss what Chris learned while working at a hedge fund, how True North selects and underwrites GP sponsors. They chat about capital allocation decisions in today's market, best practices when thinking about wealth management, and Chris' thoughts on the market.

Follow Chris on Twitter: https://www.Twitter.com/FortWorthChris
Follow Chris on LinkedIn: https://www.linkedin.com/in/chrispowersjr/
Learn more about Chris Powers & Fort Capital: https://www.FortCapitalLP.com
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital/

Listen & Subscribe on Spotify: https://open.spotify.com/show/7oIeNSaSJ4zkTQOXiedyOr?si=dEM48cSPQ9OIQ1HiD8sjrg

Listen & Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-fort-with-chris-powers/id1410549811

00:33 - Chris’ Career with Q Investments & the Hedge Fund Industry

04:00 - How Hedge Funds Determine Where to Focus Their Attention and When to Move Along

10:50 - Transitioning Into Wealth Management and Chris’ Current Role with True North

20:43 - What is a Multi-series LP?

22:59 - The Difference Between Private & Public Investments

27:16 - How do you identify good portfolio managers?

37:17 - What are things that are immediate No’s for you?

44:17 - What are some reasons companies want to get into a larger fund?

46:35 - How are some people so good at raising money without a track record?

48:45 - How much time do you spend on references?

51:16 - How much weight goes into due diligence when you are familiar with other folks in a deal?

54:24 - How do you underwrite hedge fund managers vs. private investment managers?

55:33 - How do you think about deal structures?

59:29 - How do you think about the movement behind the democratization of capital?

1:02:16 - Does more alpha exist in direct deals than anything public?

1:03:03 - How do you think about capital allocation?

1:09:15 - Is there any reason that would cause you to not continue investing in specific funds?

1:12:06 - What are your thoughts on the current market?

1:19:56 - Final Thoughts on True North and Working With Entrepreneurs

The Fort is produced by Johnny Peterson & Straight Up Podcasts