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Yokasta Segura-Baez, Managing Director, Investor Relations, ArcLight Capital Partners

Institutional Investor • 7 September 2024
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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 MA in International Relations and Politics from the University Catolica of Santo Domingo, and a Finance Certification from New York University.

At ArcLight, a manager whose funds have invested $28 billion in infrastructure, 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, such as global economic uncertainty, geopolitical tensions, and market fluctuations. There is an increase in regulatory oversight and compliance requirements, higher competition on the deal and the fundraising fronts, 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 who 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.

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 responsibilities at ArcLight lie in investor relations and fundraising, and I also work in ESG and DEI, areas that are among my greatest passions. I truly enjoy my role, especially when it comes to interacting with LPs and serving as a sounding board who can offer meaningful solutions. I feel extremely fortunate to collaborate with talented, intelligent, and hardworking individuals.

One of my favorite aspects of the job is regular communication with colleagues, peers, and investors. Keeping up with industry changes and emerging trends keeps the work exciting and dynamic.

When it comes to managing LP-GP relationships, my approach has always been consultative, with a focus on building long-lasting connections founded on trust and transparency. For me, effective communication with LPs and a deep understanding of their needs are essential. I strive to be a problem solver and to identify investment opportunities that align both with our core strengths and with the interests of our investors.

Real-time, ongoing communication with LPs is a must for me, and I love that this role constantly presents new challenges. I never find myself bored. There’s always something new to learn and experience.

Do you think there’s reliance on the Rolodex?

The Rolodex still matters. Without knowing investors, you won’t raise capital.

Relationships are key, and many of mine have taken years to build. However, fundraising isn’t just about who you know; it’s about delivering solutions, products, and services that align with investors’ needs. Not every LP fits your firm, and your firm isn’t right for every LP. Understanding who is the right match is crucial.

Beyond that, you need to dig deep into the client’s needs and long-term goals, providing solutions and acting as a trusted partner when they have questions about the market and relevant opportunities. The industry is evolving rapidly, and traditional channels like cold calling aren’t enough anymore – especially for those without established relationships. LPs now have higher expectations from GPs, especially with the rise of digital engagement.

Although the Rolodex is valuable, it isn't the endgame. Once relationships are established, it’s all about delivering top-tier client service and consistently producing results.

Who were your mentors, and what made you go into this career?

Throughout my career, I’ve been inspired by many people, both direct and indirect mentors at every stage. I greatly admire Dan Revers, our Founder at ArcLight, who built the firm from the ground up. He leads by example and is incredibly smart. I’ve also been deeply inspired by women like Carla Harris, Kelly Williams, and Mellody Hobson – among many others.

Kevin Albert, who was the Global Head of Investor Relations when I worked at Pantheon, was my direct supervisor, and I learned a great deal from him. He’s a pioneer in the industry often regarded as one of the founding figures in the Placement Agent field, having led Merrill Lynch’s placement group for 24 years. Many investor relations professionals have roots in that group.

Interestingly, I have a non-traditional background as I am actually a lawyer by training and wanted to be a diplomat, but I found myself in the right place at the right time, and over 20 years later, here I am! 

If you weren’t in this field, what would you be doing today?

I love what I do and truly enjoy my career, but if I weren’t in this field, I believe I would be a diplomat or I’d be leading a nonprofit organization dedicated to serving children in need. I am deeply passionate about children’s well-being and making a positive impact on their lives. 

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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