Daphne Tong (W'04)

Contact: Feel free to connect with Daphne Tong on LinkedIn.

What is your current position and where are you based?

I am the Co-head of Investments at WestCap, which is a growth equity fund, and I am based in New York.

Could you share more about your journey from Penn to WestCap?

I started my career at Goldman Sachs in their healthcare investment banking group as an analyst in New York. About a year in, I interviewed for private equity roles and joined Blackstone in their buyout team after the end of my two-year program. I was directly promoted to associate and spent nine fantastic years with the firm. In 2015, I joined GIC, a sovereign wealth fund in Singapore. I am Singaporean by birth and by citizenship and was intrigued by the opportunity to build out their Private Equity America’s Funds and Co-investment group. I stayed with the firm for six years and spent the last two as co-head of the group. In 2021, the Founder and Managing Partner of WestCap, Laurence A. Tosi, a former Blackstone colleague, reached out to me about joining his firm and co-heading the investment team. I was really compelled by WestCap’s operating equity model, so I eagerly joined in June of 2021.

What were some key decisions or turning points in your career?

Joining GIC from Blackstone was a key turning point in my career. I was drawn to the opportunity due to my connection to Singapore and a desire to balance my work life with my family life. I had two small kids, both under the age of two, and my mom regrettably passed away two years before, so I wanted to make a decision that would give me more control over my life. A more manageable work-life balance was part of the pitch that drew me to the role. It took time to learn that it wasn’t about any one firm, role or geography, but rather about learning to better manage myself and my time – and how I prioritize what’s important to me. What I could not have anticipated when I first joined GIC was the leadership opportunity I would get within the group. If I hadn’t taken the leap from Blackstone, I would not have had the chance to hone my leadership skills or to be given the opportunity to manage a broader team. Those years in Singapore allowed me to shift my mindset from, “Gosh, I can lead a deal” to, “I can lead a team!”

As the co-head of Private Equity at WestCap, what are your primary responsibilities and challenges? How do these align with your skills and interests developed at Penn?

My role at WestCap is to be a central part of the decisions that we are making as a firm. This includes performing diligence on a new investment, leading and collaborating with our deal teams, and regularly meeting with portfolio company management teams. When I was at Penn, I realized that I wanted to be an operator. Within the finance concentration, there are two likely paths: the first is more capital markets driven, and the second is more company and operations focused. I realized early on that I wanted to zoom in on the latter, and use finance as a tool to better understand, analyze and optimize companies.

What was your Penn experience like?

I had a great experience at Penn both from an academic, and extracurricular perspective. I joined several diverse groups like Wharton Women, Wharton Ambassadors, and I also volunteered with organizations like Ronald McDonald House and participated in a Christian fellowship. I also played on the Penn Women’s Rugby team, which was a big part of my college experience. I was captain in my senior year, and that team experience is perhaps why I am a soccer mom today! I established lifelong friends during my Penn years, and it is also where I met my husband.

What is the greatest accomplishment of your career?

I don’t know if I have achieved my greatest accomplishment yet; I hope it’s still ahead of me, and that WestCap will play a part in it. Looking backwards, however, I am proud of one of my portfolio companies from my time at Blackstone called Summit Materials. We transformed it from its first of nearly thirty acquisitions in 2009 to a publicly traded company valued at north of $4bn when we took it public in 2015. It was an incredible experience to build and grow a company alongside the founding team. I also felt like I was growing alongside them: when we first invested in the fund, I was an associate, and when we exited, I was a principal. As I matured in my career, so did the company. It was a hugely rewarding experience and also a great investment for Blackstone.

How can someone best prepare themselves for a career in private equity or a similar field?

Make sure you take the finance and accounting classes at Wharton and economics and math classes in the College! They are an essential foundation. I would also say that understanding companies and creating analytical frameworks is critical. Starting your career in an investment banking or management consulting program is an excellent way to do that.

What current trends are shaping the landscape for raising funds and investing in the technology sector?

The fund-raising environment continues to be difficult. 2023 was a challenging year for LPs, where many had to contribute more money into their existing fund commitments than they were returned. At WestCap, we were fortunate to close out our 2021 vintage fund at $2.2 billion. In terms of deal flow for new investments, it has slowed in 2023 but much of that was purposeful. We fundamentally believe there is still a disconnect between a company’s intrinsic value and the price companies and boards are looking for. Until there’s a match, it’s okay to be patient. Until then, we will continue focusing on our existing portfolio companies; whether it’s support by way of capital for an acquisition, to provide secondaries from earlier stage investors on the cap table, or to lead an employee tender.

What advice do you have for our members as they begin exploring internships, careers, and the business world at large?

First, be open to conversations with everyone you meet. Networking is key! At Penn, this might mean chatting with upperclassmen who have a lot to offer about career paths. During your internships, this means scheduling coffee chats with people from within and outside of your group. When you start your career, it means investing in relationships because you never know where your past will lead you. I joined WestCap because I would be working with old colleagues from Blackstone. At GIC, the former head of Americas for Private Equity had worked on a deal with me when I was at Blackstone, and I had a friend from both Penn and my Goldman Sachs analyst program who had joined GIC a couple years beforehand. And I joined Blackstone because one of my friends from Penn had started with the firm as an undergrad and referred me. You don’t always know where each connection will lead, but they will surely pay dividends in the future.