Last year, Justin Ernest noticed a gap in venture capital: family offices wanted to invest in hot startups but couldn't get access. Instead of launching a formal fund, he used his network to secure allocations in high-profile companies like Anthropic and SpaceX.

Ernest's firm, Sabertooth Capital, treats each deal as its own separate fund, often using single-asset funds or nominee structures. This allows him to make significant investments from $10 million to $275 million, always participating in official funding rounds.

The success of these SPVs has earned Ernest a solid reputation among family offices. For instance, when Wagner tried to invest directly in PsiQuantum, the CFO suggested he go through Sabertooth instead.

Ernest’s ultimate goal is to raise a traditional venture fund, but for now, he's focusing on growing his business of raising funds for specific companies. His strategy has already delivered major returns from chipmaker Groq and SpaceX's upcoming IPO, which could bring even greater windfalls for investors.