Institutional Investor is proud to recognize leaders within the allocator community for their outstanding contributions to portfolio development at the second annual AlphaEdge Recognition Dinner. Prior to the event, we sat down with Yokasta Segura-Baez, whose firm, ArcLight Capital Partners, is recognized in the category of Outstanding LP-GP Partnerships.
Yokasta Segura-Baez has made collaboration a cornerstone of her career. She has over 20 years of experience in Investor Relations and fundraising. Before she joined ArcLight in 2022, she was with Capital Dynamics, where she managed North America's strategic investor and consultant relationship management. Previously, Yokasta held senior positions with Campbell Lutyens, Pantheon and Ardian. She has also been extensively involved in promoting both diversity and ESG initiatives.
She holds a J.D. in International Law from the University of Santo Domingo, an M.A. in International Relations and Politics from the University Catolica of Santo Domingo, and a Finance Certification from New York University.
At ArcLight, a Boston-based, $8 billion+ infrastructure asset manager, Yokasta focuses on Investor Relations and Fundraising.
The following has been edited for length and clarity.
What do you think is the biggest challenge facing the industry right now?
There are several challenges that the industry is facing right now, ranging from market volatility, such as global economic uncertainty, geopolitical tensions, and market fluctuations. There is an increase in regulatory oversight and compliance requirements, rising interest rates, higher competition on the deal front as well as on the fundraising front, ESG considerations, operational risks, and, in some cases, talent management.
Rapid technology advancements such as AI are already impacting our industry. The evolution of private markets creates a competitive environment, and those that do not adapt quickly will struggle.
Do you think succession planning in the next five years will be a challenge?
Succession planning is essential and can be a significant challenge if not done correctly. Transitioning leadership is at the top of the minds of those founders nearing retirement, and as such, having a clear succession plan and retaining top talent ensures that the next generation has the necessary skill set to step up and adapt to the changes without disrupting the firm’s culture is critical.
It is critically important for the LP-GP relationship as succession involves managing relationships with Limited Partners, portfolio companies, and stakeholders. Many private equity firms have been able to manage succession properly. It is important to have a clear strategic vision and investment philosophy that is both adaptable and resilient to navigate these challenges effectively. Regarding succession planning, firms must proactively identify the next generation of leadership, maintaining the proper alignment and talent retention for long-term firm stability.
Which part of your current position do you like the most?
My primary role at ArcLight is investor relations and fundraising. I’ve been active in the industry for over 20 years and have witnessed changes in the LP-GP relationship. My role is to ensure we have a stellar investor relations service for our existing and prospective LPs and that we continue to build relationships over time and remain relevant.
LP-GP communication has evolved over the years. As such, an essential part of my role is to ensure we communicate effectively and efficiently with our LPs. We strive to share our market knowledge, industry trends, and the competitive landscape and identify investment opportunities that align with our core competencies and investors' interests.
My style has always been more consultative and focused on building solid, long-lasting relationships based on trust and transparency. The times when GPs just visited LPs when they were fundraising-only are long gone. Real-time and ongoing communication with LPs is a must.
Do you think there’s reliance on the Rolodex?
Rolodex remains important because if you don’t know investors, you won’t be able to raise anything. Most of my relationships have taken me years to build over time. Fundraising is not about whom you say you know but about offering solutions, products, and services that match LP's needs. Not every LP is for your firm, and your firm is not for every LP; understanding who is a good fit for your firm is important. Then, drilling deep into that, you need to understand the client’s needs and ultimate goals, provide solutions and responses, and serve as a sounding board when they have questions about the market environment and opportunities that make sense to them.
Rolodexes matter, but you can’t rely on them only. Once you have investors, it’s all about client services, servicing, and providing high-quality results for those clients.
Who were your mentors, and what made you go into this career?
Many people have inspired me, and there were direct or indirect mentors at every step. I admire Dan Revers, our Founder, who built the firm from scratch. He leads by example and is extraordinarily smart. Kevin Albert (retired) was a former Head of Investor Relations when I worked at Pantheon. I learned a lot from him. Kevin is known as one of the founders of the Placement Agent industry when he led the group at Merril Lynch for almost 30 years. Many investor relations professionals came out of that group.
If you weren’t in this field, what would you be doing today?
I love what I do! If I weren’t in this field, I believe I would be a diplomat or a not-for-profit volunteer. One of my greatest passions is to help children in need.
What is the one thing you think the industry should do to improve itself, and what advice would you give the next generation of IR professionals?
I believe that adopting enhanced transparency and communication practices is vital to industry improvements and a continued focus on increasing diversity across the board. For the next generation of IR professionals, developing strong communication skills, building and maintaining relationships, staying informed, and adaptability are key to succeeding in this role. This generation has an opportunity to leverage technology than ever before.
Any professional, not only IR professionals, should continuously learn and develop their skill set to remain relevant.
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