Capital Allocators – Inside the Institutional Investment Industry

Last week was one of the most volatile in market history. In the last twenty-five years, it’s likely matched only by the pandemic and Global Financial Crisis in the breadth of potential outcomes for the future. In a change from our typical market-insensitive conversations, I was fortunate to gather three of the most insightful thinkers on global macroeconomics and geopolitics on Friday to share their assessment of the changing landscape.   My guests on today’s show are James Aitken, Marko Papic, and Louis-Vincent Gave. James is the founder of Aitken Advisors, Marko is the Macro-Geopolitical Chief Strategist at BCA Research, and Louis is the Co-Founder of Gavekal Research. Each are past guests on the show, and their first appearances are replayed in the feed.   Our conversation explores the shifting landscape of global markets and geopolitics, highlighting their shared belief in the end of U.S. exceptionalism. We dive into the conditions leading into Liberation Day, the motivations of the U.S. and China, and the likely outcome of the tariff wars.    We then turn to the markets, covering the weakening U.S. dollar, rise of non-aligned nations, opportunities emerging in Latin America, Europe, and Asia, U.S. Treasuries and the yield curve, and private markets. We close with thoughts on potential winners and losers while unpacking how allocators can navigate this period of profound change. Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership 

Transcribed - Published: 14 April 2025

Howard Marks is a renowned investment thinker and the co-founder and co-chairman of Oaktree Capital Management, a leading global investment firm overseeing $200 billion primarily in credit investments that is majority owned by Brookfield Asset Management. Our conversation covers Howard's journey from his early days in finance to his current insights on the evolving credit landscape. We dive into themes from his latest Memo, Gimme Credit, exploring the pendulum swings in investor sentiment, the rise of private credit, and implications for investors. We also discuss the changing dynamics of private equity, the trend of asset manager M&A, and life as a public company. Throughout our conversation, Howard shares his timeless wisdom on risk management, market cycles, and the enduring principles of successful investing. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 7 April 2025

This WTT – PE Investing in 2030 - takes a look at the playbook for investing in private equity and how the current period of liquidity challenges might impact allocations going forward. Allocators will need to fine-tune their core investment beliefs to answer the many questions this environment has raised. Read Ted’s blog here.

Transcribed - Published: 2 April 2025

Meghan Reynolds is Partner and Head of Capital Formation & Talent at Altimeter Capital, a leading technology-focused investment firm founded by Brad Gerstner. Meghan joined Brad three years ago, after decade-long stints at Goldman Sachs and TPG. She’s like the private equity version of my friend and partner Rahul Moodgal, bringing a keen understanding of LPs and a relationship-focused approach to her role.   Our conversation covers Meghan’s experience building and maintaining great LP relationships over twenty-five years at both large and smaller firms. She discusses the role of capital formation, approach to serving clients, process of seeking prospects, and parallels between venture capital today and private equity a decade ago. We close with a discussion of what Meghan is hearing from LPs.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 31 March 2025

We are excited to launch our latest initiative - Capital Allocators Coaching. We’ve brought together a team of retired CIOs and asset management executives to coach managers on telling their story. Learn more and schedule a consultation here.

Transcribed - Published: 27 March 2025

Ed Grefenstette is the CIO of The Dietrich Foundation, which supports charitable organizations in Western Pennsylvania through a truly unique investment strategy that seeks to first, last, and always grow the assets. Bill Dietrich, a successful industrialist, published historian, international investor, and innovative philanthropist, formed the foundation after selling his business for $170 million in 1997. Since then, the pool has grown 11.5x to $1.5 billion after distributing $400 million to supported charities, including contributions that make it among the largest donors every year to Carnegie Mellon University and the University of Pittsburgh. Over the last twenty years, the Dietrich Foundation's performance sits at the very top of all endowments and foundations.   Our conversation covers Ed's journey to investing and mentorship by Bill Dietrich, which led to him taking the helm at the Foundation in 2007. We discuss the Foundation's bold approach to illiquid investments, with 90% of assets invested in venture capital and private equity, its governance structure, and its thematic focus on innovation and emerging markets. Along the way, Ed shares insights into managing liquidity, constructing the portfolio, selecting managers, and navigating geopolitical risk to maintain conviction in an uncomfortably different strategy.   Ed’s approach and results will open your aperture to what’s possible in an institutional portfolio with the right goals, structure, and governance in place.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 24 March 2025

Alex Sacerdote is the founder of Whale Rock Capital Management, a technology-focused investment firm that manages $8 billion across hedge fund, long only, and hybrid strategies.   Our conversation covers Alex’s path to running Whale Rock, shaped by early exposure to the markets through his father, a longtime partner at Goldman Sachs, and his formative years at Fidelity. We dive into the key lessons he learned at Fidelity, the development of his investment framework centered around S-curves, competitive advantages, and underappreciated earnings power, and the application of the framework to AI, Mag 7, cloud computing, electronic vehicles, and blockchain technologies.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 17 March 2025

Shannon O’Leary is the CIO of the St Paul & Minnesota Foundation, where she oversees $1.8 billion for the community foundation that aspires to create an equitable, just, and vibrant Minnesota. Shannon took the post six years ago after twenty years working with families. She describes herself as ‘blunt,’ comfortably speaking her mind, including in her LinkedIn newsletter entitled ‘Say It Out Loud’. Our conversation covers Shannon’s relationship-driven approach to investing across families, Boards, team members, and managers. We discuss the value of frank communication in every aspect of the investment process, from setting policy to manager access, research, selection, and partnership. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 10 March 2025

David Zorub is the Founder and CIO of Parsifal Capital Management, a $1.5 billion hedge fund that invests in a concentrated portfolio of longs and shorts across geographies, sectors, and capital structures. David joined me on the show a few months before he launched Parsifal six years ago to discuss his plans. We got back together to talk about what’s happened since. Our conversation covers the headwinds facing fundamental investing, Parsifal’s approach to counter those challenges, and the investment and business processes that led the firm to reach this point. Along the way, David shares keen insights into research, portfolio construction, and partner relationships that have combined to take Parsifal from a start-up hedge fund to a thriving organization in a difficult environment to do so. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 3 March 2025

David Zorub is the founder of Parsifal Capital, a new hedge fund he is launching later this year.  Before founding Parsifal, Dave spent fifteen years in research and portfolio management at hedge funds and another few in investment banking and private equity.    I interviewed David recently at Columbia University’s Student Investment Management Conference and that conversation follows. We cover his career path and his insights into the philosophy and structure of a hedge fund business and investment portfolio. It’s not easy starting a hedge fund these days, and those eager to try will get a sense of the challenges ahead by listening to an experienced investor who’s making a go of it.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 3 March 2025

Brett Barth and Evan Roth are co-founders and Co-CEOs of BBR Partners, a multi-family office that oversees $32 billion on behalf of 180 families and is celebrating its 25th anniversary this year. Brett appeared on episode 3 of Capital Allocators eight years ago and is a regular contributor in our Friends Reunion shows. I’ve observed BBR’s growth since first meeting Brett and Evan twenty-four years ago and was excited to hear more about their journey.   Our conversation covers BBR’s successes, missteps, and key lessons over the years. We discuss their investment philosophy and cultural principles, the “turbulent regimes” that cemented their approach with clients, and their shift in mindset from scrappy entrepreneurs to managers of an enduring business. Evan and Brett describe the business and investment decisions that allowed BBR to sustain success, create peace of mind for clients, and prepare for the next long chapter in BBR’s story.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 24 February 2025

What are the implications of consolidation in the private markets? The leading firms, which are mostly public companies, raised an insane amount of money last year, while the rest of the industry mostly struggled. What will this mean for private markets going forward? Have a listen to find out. Read Ted’s blog here.

Transcribed - Published: 21 February 2025

Michael Choe is the CEO and Co-Head of Flagship private equity strategy at Charlesbank Capital Partners, a $22B manager of middle-market private equity, credit, and technology opportunities that spun out of the Harvard Management Company in 1998. Our conversation covers Mike’s path from science to finance, including an immigrant story and a draw to decision-making at a young age. We discuss Charlesbank’s history and aspiration to manufacture sound decision-making as a path to investment success, applying its “fan of outcomes” thinking to talent, research, diligence, sourcing, and company operations. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 17 February 2025

Ian Charles is a founding partner at Arctos Partners, a $10 billion private equity firm that strives to create valuable solutions to complex problems. In just five years, Arctos has become the leading institutional investor across the five major North American sports leagues. It also serves as a strategic partner to leading private market sponsors with bespoke capital and liquidity solutions. As part of its effort to support both ecosystems, Arctos publishes data-driven research and content under the Arctos Insights umbrella. Ian is a repeat guest on the show. Our first conversation with co-founding partner Doc O’Connor describing the sports strategy is replayed in the feed. This time around we walk through the changing competitive landscape of private equity, covering the most important narratives for GPs and LPs and how both sides are navigating the environment. We discuss Arctos’ taxonomy of private equity firms and the implications of its different levels to a GP’s strategic positioning and right to win. Ian has a long history serving the private equity market and is unusually insightful and blunt in describing the complex and evolving marketplace. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 10 February 2025

Ian Charles and Doc O’Connor are the Co-Founders and Managing Partners of Arctos Sports Partners, a private equity firm dedicated to buying minority stakes in professional sports franchises. From its founding just two years ago, Arctos quickly has become the market leader in the space, raising a $2.1 billion first-time fund and a SPAC alongside Executive-in-Residence Theo Epstein, and buying stakes in MLB teams including the Boston Red Sox, the Golden State Warriors and Sacramento Kings in the NBA, and a compliment of other sports assets. Our conversation covers their backgrounds and the formation of Arctos, the investment opportunity in sports franchises, and the underlying business and ownership structure. We then turn to the unique characteristics look of the asset, investment process, and growth strategy.   Full disclosure, I am a personal investor in Arctos’ fund and am a fan of their strategy and team, pun intended. I hope you’ll enjoy this conversation with Doc O’Connor and Ian Charles as much as I did. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership[

Transcribed - Published: 10 February 2025

Anthony Pompliano is an entrepreneur, media creator, and investor who has built one of the largest audiences of DIY investors. His following canvasses 1.6 million people on X, 560,000 on YouTube, and 260,000 on his daily The Pomp Letter. Anthony created Professional Capital Management, an investment company that builds and invests in early-stage companies by leveraging his audience. He’s not alone in his family in creating a following. Pomp’s wife Polina writes the popular blog, The Profile, and his brother Joe writes the sports business blog, Huddle Up. Pomp also recently published How to Live an Extraordinary Life, which shares life lessons through letters to his children. Our conversation covers Pomp’s passion for competing, leading, and problem-solving, formative business experience at Facebook, translating lessons to build a social media audience, and monetizing that audience through investing. We close touching on his wonderful book with a few anecdotes and lessons to share.   Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 3 February 2025

Mitchell Green is the founder and managing partner of Lead Edge Capital, a growth equity firm with $5 billion in assets that invests in software, internet, and tech-enabled businesses. Lead Edge leverages its LPs, comprised of over 700 seasoned executives, entrepreneurs, deal makers, and celebrities to connect its portfolio companies with customers, partners, and talent. Unlike any other firm I’ve seen, the impressive list of LPs is publicly available on the firm’s website. Our conversation covers Mitchell’s early exposure to business and finance, Lead Edge’s cold-calling strategies, investment criteria, and leverage of LPs to source, diligence, and add value to portfolio companies. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 27 January 2025

Could 2025 be the year private equity fund flows return to normal? No. Not yet. Ted explains why in his latest post. Read Ted’s blog here.

Transcribed - Published: 22 January 2025

When you think of the greatest private equity deals of all time, names like Google, Facebook, Uber, Dell, and Hilton come to mind. After a recent episode of Private Equity Deals, you might also think about 3G’s acquisition of Burger King. But I’d bet you wouldn’t think about an oil and gas play called CrownRock. Lime Rock Capital created CrownRock alongside a management team with $96.5 million of cash and assets in 2007. Seventeen years later, sold the business to Occidental Petroleum for $12.5 billion. Lime Rock’s original investment made 79x its money, a net IRR of 18%, and $7.5 billion in gains, which ranks in the top ten fully exited private equity deals of all time. It also exited a continuation vehicle that generated 3x its cost over the last six years of the deal’s life. My guests to discuss the firm and its grand slam CrownRock deal are Lime Rock Managing Directors John Reynolds, Jonathan Farber, and J McLane. Our conversation covers Lime Rock’s investment approach and the example of CrownRock. We dive into the initial investment thesis around vertical drilling, the three extinction threats to the business, innovation of horizontal drilling, management excellence, exit options along the way, and the ‘forever hold’ mindset that allowed CrownRock to compound extraordinary amounts of capital. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 20 January 2025

Mark Sullivan and Roberto Isch are Partners at Wellington Management, the $1.3 trillion privately owned firm. Mark is the Head of the Hedge Fund Group and Roberto is a Risk and Portfolio Manager. Wellington began its hedge fund strategies in the mid-1990s. Their activities started with a series of long-biased sector specialist strategies, added a multi-asset fund-of-funds, and most recently, built a market-neutral platform overseen by Mark and Roberto. Our conversation covers the history and current state of hedge fund investing at Wellington, including the client-led development of product offerings and the manager selection, portfolio construction, and risk management of the group’s third-generation strategy. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 16 January 2025

Donald Miller is the CEO of StoryBrand and author of ten books that have collectively spent more than a year on New York Times Bestseller lists. Don helps businesses clarify their message so customers will listen. His latest book, Building a Storybrand 2.0, is a revised edition of one of the most succinct, impactful, and actionable books I’ve come across on storytelling. Our conversation covers Don’s most important lessons in telling a story that resonates with customers, including the seven elements of story structure and key components of each. Don wants to share his gift for taglines with you. He recently launched storybrand.ai, a free LLM trained on 120 pages of his insights. In just seven minutes, you can have Don write your tagline. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 13 January 2025

The beginning of a new year brings with it time for reflection and the renewal of rituals. We reflect on our personal and professional lives, set goals for the coming year, and start sprinting towards those goals – hopefully with enough time to calibrate our personal GPS. One part of the ritualistic sprint is conference season. Industry leaders gather at Davos for the World Economic Forum and Miami for iConnections Global Alts in January, in Beverly Hills for Milken in May, in Sun Valley for Allen & Company in the summer, and at many locations throughout the year. We’ll be doing the same at our Capital Allocators CIO Summit in April, Senior Decision Makers Summit in June, Capital Allocators University in July, and Small and Emerging Manager Summit in September. So as you get ready to leave the starting blocks, it’s a good time to pause and think about how to optimize your time and budget at industry events. At Capital Allocators University in December, Hank hosted a panel with Ron Biscardi and Katie O’Reilly to discuss how to think about, plan, and maximize your time and value at conferences. Today’s show shares their panel discussion from Capital Allocators University. Head of Business Development Job Posting Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 6 January 2025

We're counting down the top 5 episodes of 2024.    The top episode this year is perhaps the most timely of our 500 as well. It's Episode 415 with Scott Bessent, a brilliant macro thinker and the cabinet nominee for Secretary of Treasury. The position created by Alexander Hamilton. I was an investor in Scott's first hedge fund, a partner of his for four years, a friend for more than 20, and a huge fan. I'm excited for Scott and for our country about what his appointment might mean for our economic future.   Head of Business Development Job Posting   Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership

Transcribed - Published: 3 January 2025

We're counting down the top 5 episodes of 2024.    Clocking in at number two is Mike Milken, Episode 3 71. Mike single-handedly developed the high yield market, which has fueled the growth of private equity ever since. When paired with the subsequent episode with his longtime attorney, Richard Sandler, the conversations offer a fresh perspective on Mike's legacy.   Head of Business Development Job Posting   Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership

Transcribed - Published: 2 January 2025

We're counting down the top 5 episodes of 2024.    Coming in at number three is Episode 385 with the irrepressible Cliff Asness from AQR. Cliff is part brilliant quant and part standup comic. That combination always makes for an entertaining conversation, chockfull of research-backed insights.   Head of Business Development Job Posting   Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership

Transcribed - Published: 1 January 2025

We're counting down the top 5 episodes of 2024.    Coming in at number four is Episode 414 with Ricky Sandler from Eminence Capital. Ricky discusses his 30 years in the business of investing long and short equities and the adjustments he's had to make to his investment and business strategies to continue to thrive in ever-changing conditions.    Take Capital Allocator’s Audience Engagement Survey   Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership

Transcribed - Published: 31 December 2024

For this year’s annual review, our CEO Hank Strmac and I sat down to discuss where we’ve been and where we’re headed. Our conversation covers the best blogs and podcasts of the year, my investment activity, what’s top of mind for allocators and managers, our upcoming podcasts, Summits, and CAU education courses in 2025, the team who makes it all happen, and a few closing questions. I hope you find the conversation engaging and informative. Wishing you a very happy and prosperous new year. Head of Business Development Job Posting Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 30 December 2024

We're counting down the top 5 episodes of 2024.    Coming in at number five is Episode 384 with Alex Behring and Daniel Schwartz of 3G Capital, discussing their unique private equity organization and their wildly successful purchase of Burger King.   Take Capital Allocator’s Audience Engagement Survey   Learn More Follow Capital Allocators at @tseides or LinkedIn Subscribe to the mailing list Access transcript with Premium Membership

Transcribed - Published: 30 December 2024

Today’s show is our third in the Training Grounds mini-series, following Carnegie Corporation and Bain Capital to better understand how certain organizations have developed industry leaders. Wellington Management is one of the world’s largest, privately held asset managers, managing over $1.3 trillion in assets with 875 investment professionals across 19 offices and a nearly 100 year history with an unusually low level of turnover along the way. Wellington has developed, recruited, and retained leading global investment talent across public equities, fixed income, and recently private markets as well. My guest to discuss this training ground is Jean Hynes, CEO of Wellington, who has spent more than thirty years at the firm starting as an administrative assistant. Our conversation covers Wellington’s cultural values and boutique investment team model, including apprenticeship for junior talent, recruiting at the mid-level, and promotion all the way to partner. We then discuss Wellington’s evolution from a U.S. equity value shop to a global, multi-asset, multi-strategy powerhouse, and Jean’s evolution from a portfolio manager to CEO.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 23 December 2024

Eric Peters leads both One River Asset Management and Coinbase Asset Management and writes a widely dispersed blog called Wknd Notes, in which he shares macro insights. He’s twice been a guest on the show, discussing his bespoke macro investment strategy four years ago and the case for Bitcoin three years ago. Both conversations are replayed in the feed.   Since then, many of One River’s strategies played out well during Covid, and Coinbase acquired One River Digital Asset Management in March 2023. We got back together to discuss how Eric has adapted to the changing environment, including One River’s shift from bespoke offerings to a total portfolio solution and the continued case for Bitcoin. Along the way, Eric shares his keen insights on portfolio construction, left-tail risks, and right-tail opportunities.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 16 December 2024

Eric Peters is the founder and CIO One River Asset Management, where he searches for high conviction strategies coming out of his team’s expertise trading and investing in thematic macro, volatility, systematic, and inflation strategies – each as it turns out, turned his focus on study bitcoin and cryptocurrencies.   Eric made news in November when he executed a $600 million purchase of bitcoin, then the largest public transaction to date. He has called bitcoin the most interesting macro trade he’s seen in thirty years in the business, and we kick off this mini series, Crypto for Institutions with his macro case for the digital asset.   Our conversation discusses the intrigue of Bitcoin as a form of money, how digital currencies will somewhat ironically increase the power of governments and the likely co-existence of bitcoin with government digital currencies in the future. The then turn to the development of institutional infrastructure for digital assets, Eric’s perspective on bitcoin as an investor and a trader, the reflexive nature of bitcoin supply, and the risks in the asset.  Lastly, we discuss the story of Eric’s big trade, the future of bitcoin, and institutional interest in the space.   Please enjoy my conversation with Eric Peters in this first of four episodes in the mini-series Crypto for Institutions.   Learn More Subscribe: Apple | Spotify | Google   Follow Ted on Twitter at @tseides or LinkedIn Subscribe Monthly Mailing List  Read the Transcript 

Transcribed - Published: 16 December 2024

Eric Peters is the founder and CIO One River Asset Management, an investment manager dedicated to delivering high conviction absolute-return strategies, where each individual strategy comes out of the team’s expertise in thematic macro, volatility, systematic, and inflation trading/investing. Eric has been a long-time trader and writes a widely dispersed email called Weekend Notes, in which he shares macro insights through colorful anecdotes. Our conversation starts with Eric’s early exposure to trading, macro blow-ups, and the formation and activities of One River. We then turn to the current environment and get his sobering thoughts on what has transpired and what the turmoil will mean for private equity and asset allocation going forward. Learn More Read the Transcript Subscribe to the Capital Allocators Blog or Monthly Mailing List Don't Subscribe, but Let Us Know Who You Are Write a review on iTunes Follow Ted on twitter at @tseides Review past episodes of the Podcast

Transcribed - Published: 16 December 2024

Consolidation in asset management is one of the industry's most important trends. When any industry enters a mature phase, consolidation brings the benefits of economies of scale, product depth, and broader services to meet client demands. We’ve seen a rising tide of merger activity in recent years, effecting both asset managers and allocators alike. My guests on today’s show are leaders of two organizations that announced mergers in October – Simon Krinsky, a Managing Partner at Hall Capital and Tim McCusker, CIO at NEPC. Hall announced a merger with Pathstone, adding its $45 billion in assets to Pathstone’s $100 billion. NEPC announced a sale of a majority stake in its firm to Hightower Holdings, adding NEPC’s $1.8 trillion of assets under advisement to Hightower’s $130 billion of assets under management. Both Hall and NEPC have been longstanding independent organizations that are selling to a partner backed by private equity owners. Simon and Tim walk through their rationale for the transactions, deal process from idea to signing, and opportunities and challenges going forward. The organizations share similarities in their long independent history, broad equity ownership, and investment capability, while also having significant differences in their new partners, incentive structure, and plan to service clients. Together, Simon and Tim offer an inside look at dealmaking in asset management.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 9 December 2024

Chris Heller is the Co-Founder of Cordillera Investment Partners, a $1.6 billion manager of non-correlated, niche investments, or weird alternatives. Cordillera looks for investments ahead of the crowd that offer compelling returns and significant diversification. Chris came on the podcast two years ago in our Manager Meeting series interviewed by FEG’s Greg Dowling, and that conversation is replayed in the feed. Our follow-up covers lessons learned over ten years of focusing on off-the-run investments. We reflect on Cordillera’s strategy, sourcing funnel, research, operating partners, deal structures, and risk management. We then discuss the importance of people, humility, and struggle in investment success. Along the way, Chris colors his lessons with examples from specialty financing of whiskey, boat marinas, wireless spectrum, land for data centers, sports, and cheese.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 2 December 2024

On today’s Manager Meeting, Greg Dowling interviews Chris Heller. Greg is the Co-CIO and Head of Research for Fund Evaluation Group, an institutional OCIO and investment consultant with $83 billion in assets under advisement. Chris is Co-Founder and Co-Managing Partner at Cordillera Investment Partners, a $1.2 billion alternative investment fund that invests in niche, non-correlated assets, or what Chris calls weird stuff, like whiskey aging, boat marinas, spectrum, and water rights. Their conversation covers Chris’s background and the founding of Cordillera, the evolution of alternative assets and alternative alternatives, sourcing new opportunities, conducting due diligence, measuring risk, portfolio construction, and exit strategy. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 2 December 2024

Matt Bank is the Deputy Chief Investment Officer at GEM, an OCIO that manages $12 billion for forty clients. GEM was founded in 2007 by investment leaders at The Duke Endowment and Duke University Investment Management Company. Our conversation covers Matt’s path to investing under recent guest David Salem and lessons learned about risk and governance while under his tutelage. We then turn to Matt’s move to GEM and its positioning in the OCIO industry. We cover GEM’s approach to asset allocation and manager selection, and close with Matt’s thoughts on active and passive investing, venture capital, hedge funds, and drivers of success going forward.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 25 November 2024

Matt Bank is the Deputy Chief Investment Officer at GEM, an OCIO that manages $12 billion for forty clients. GEM was founded in 2007 by investment leaders at The Duke Endowment and Duke University Investment Management Company. Our conversation covers Matt’s path to investing under recent guest David Salem and lessons learned about risk and governance while under his tutelage. We then turn to Matt’s move to GEM and its positioning in the OCIO industry. We cover GEM’s approach to asset allocation and manager selection, and close with Matt’s thoughts on active and passive investing, venture capital, hedge funds, and drivers of success going forward.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 25 November 2024

Jeff Glass is the Cofounder and CEO of Hometap Equity Partners, a novel platform with $1 billion of investments alongside a mission to allow homeowners to access their home equity without having to sell, stress, or borrow. Jeff started the business eight years ago after a series of successes as an entrepreneur followed by seven years investing at Bain Capital Ventures. Our conversation covers Jeff’s early lessons in sales, entrepreneurship, and investing that led to the founding of Hometap. We then discuss Hometap’s investment strategy, including the chicken-and-egg problem of starting the business, sourcing homeowners, sourcing capital, and developing the team, culture, and infrastructure that brings it all together. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 21 November 2024

Jon Glidden is the CIO of Delta Air Lines, where he oversees the company’s $16 billion pension fund. Jon joined Delta in 2011, when the plan had $7.5 billion in assets, a $13 billion underfunded liability, and the highest actuarial expected rate of return (9%) of any company in the S&P 500. Despite funded status that threatened the solvency of the company thirteen years ago, investment performance combined with corporate contributions that offset plan payouts have improved Delta’s funding status from 42% to 102% today, creating the largest corporate pension turnaround in history. Our conversation discusses Jon’s independent thinking and innovative approach that led to his incredible feat. We start with his Naval and investment background and then cover the four forces that drive his investment philosophy - portable alpha, private equity, portfolio construction, and governance - and the implementation of each.   Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 18 November 2024

Chris and Rob Michalik are twin brothers and co-founders of Kinderhook Industries, a middle-market private equity firm overseeing $8 billion focused on healthcare services, environmental services, and the automotive aftermarket. Chris and Rob joined me on Private Equity Deals to discuss one of their portfolio companies, Ironclad Environmental Services, and that conversation is replayed in the feed. This time around, we discuss their story attached at the hip. We cover their background and path to starting Kinderhook, including rooming together for the first 26 years of their lives. We discuss the firm's family-like culture, three pillars of its investment approach, unwarranted scrutiny of private equity in the healthcare sector, and the recent example of their purchase of Stewardship Medical Group out of the bankrupt Steward Healthcare. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 11 November 2024

On episode eight of season three of Private Equity Deals, Chris and Rob Michalik discuss Kinderhook Industries’ investment in Ironclad Environmental Services.   Chris and Rob are twin brothers and co-founders of Kinderhook, a twenty-year-old private equity firm that manages $5 billion specializing in middle-market businesses across healthcare services, environmental services, and automotive/light manufacturing.   Ironclad Environmental Services is a leading provider of logistics-based solutions focused on the containment of industrial waste. It has 50 branches and a fleet of 29,000 specialized rental assets that store, separate, and transport liquid and solid industrial waste.   Our conversation covers Kinderhook’s identification, due diligence, and negotiation of the deal. We discuss a significant early add-on acquisition, progress-to-date, and the future of Ironclad.   Learn More   Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 11 November 2024

Scott Bessent is the CEO and CIO of Key Square Group and a renowned global macro investor. His 40-year investment career has included two stints at Soros Fund Management, the first for a decade under Stan Druckenmiller and the second for five as CIO. In between, Scott launched a hedge fund, retired, and joined me at Protégé Partners when he learned retirement wasn’t for him.   Following his second tour at Soros, Scott started Key Square with $4.5 billion, one of the largest hedge fund launches in history. Scott has been profiled in two best-selling investment books, Steve Drobny’s Inside the House of Money and Sebastian Mallaby’s More Money than God.   Our conversation covers Scott’s investment path learning research from Jim Rogers, short selling from Jim Chanos, global macro investing from George Soros and Stan Druckenmiller, and twice hanging his own shingle. We discuss high-conviction ideas, asymmetric asset selection, position sizing, risk management, a hub and spoke approach, and core challenges of the global macro hedge fund business.    I once told Scott that he could read the newspaper six months ahead of time because I had never encountered someone with his ability to connect dots and imagine investments others had not considered. His interest in improving the country’s economic picture has led him to shed his publicity-shy nature, and I’m grateful for the opportunity to share his story. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 4 November 2024

Ricky Sandler is one of the OGs of fundamental long-short equity investing. Ricky started managing a hedge fund thirty years ago and founded Eminence Capital a few years later. Today, he is the CEO and CIO at Eminence, where he oversees $7 billion across long-short, long-only, and long-extension strategies. Our conversation covers Ricky’s path to launching Eminence in his twenties and the evolution of long-short investing in the decades since. We dive into Eminence's culture, adaptation in the investment process, and creation of investment products to meet the needs of allocators, each of which has been an essential part of the firm’s ability to survive and thrive amid changing market dynamics. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 28 October 2024

The Yale Investments Office will soon select its first round of Prospect Fellowship recipients. I’ve been thinking about why Yale launched the Fellowship and what might happen as it rolls out. Yale, emerging managers, and other allocators have opportunities and risks arising from the program, including some potential unintended consequences. Read Ted’s blog here.

Transcribed - Published: 25 October 2024

Brad Briner is the leading candidate for the Treasurer of North Carolina in the upcoming November election, a role that includes managing the state’s $115 billion pension fund. Brad put himself in the ring for the seat after twenty-five years of investment experience, serving most recently as Co-CIO of Willett Advisors, Michael Bloomberg’s family office. For more background on Willett, my conversation from 2019 with Chairman Steve Rattner is replayed in the feed. I don’t often get to talk about really poor investment performance on the podcast, but this time we do. North Carolina has finished dead last among peers over the last three and five years, that’s 50th of 50 states. Its twenty-year returns are almost equally dismal. This significant underperformance resulted from an overlay conservative asset allocation that will leave you shaking your head. Unfortunately, it’s what happens when unsophisticated professionals are tasked with serious investment jobs. Our conversation covers Brad’s story, investment and leadership insights from his experience and time at Willett, the problems with North Carolina’s investing and governance, and Brad’s desire and plan to turn around the state’s pension performance. I’ve known Brad for ten years and want to do everything I can to help him both win the important seat and succeed once there. So if you happen to live in North Carolina, please get out and vote – every vote truly counts in low turnout races like thisIf, like most of us, you don’t live there, please tell any friends you have who do live in the state. Lastly, if Brad is successful at the polls, he’ll need to build out a team with talented professionals who share his passion for investing and making a difference. Maybe you can help there too. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 21 October 2024

Steve Rattner is the Chairman and CEO of Willett Advisors, which invests former New York Mayor Michael Bloomberg’s personal and philanthropic assets. Steve’s career has ranged from a journalist for the New York Times to investment banking at Lehman Brothers, Morgan Stanley and Lazard Freres, to founding private equity firm Quadrangle Group, and lastly to serving in the Obama Administration as head of the successful restructure of the automobile industry after the financial crisis. He returned to oversee Willett Advisors after his work in the government.   Our conversations starts with a quick tour through each of Steve’s careers, and then turns to his work investing the assets of Michael Bloomberg’s family office, including selecting an investment model, building a team of specialists, using internal management to supplement external managers, and thinking through private equity, hedge funds, public equity, and the manager selection process. We close with Steve’s perspectives on China and his ongoing engagement in politics. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 21 October 2024

Matt Miller is the Managing Director of Grey Rock Investment Partners. Matt co-founded Grey Rock as a traditional oil and gas manager in 2013. Today, the firm manages $1 billion across both natural resources and renewables by identifying attractive niches in each that do not tradeoff human interest for returns. Our conversation covers Matt’s path to the energy sector and founding of Grey Rock, the ongoing need for natural resources, and the identification of dislocations that create niche opportunities. We turn to Grey Rock’s own ‘energy transition’ intended to resolve ESG pressures while meeting client return objectives, including the overcapitalization of most renewable strategies, discovery of an attractive niche in carbon capture, and complexity in making it work. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 14 October 2024

Kristof Gleich is the President and CIO of Harbor Capital Advisors. Harbor is a forty-year old firm that manages $62 billion by partnering with boutique active managers to roll out active ETFs, collective investment trusts, and historically, mutual funds. Kristof joined Harbor in 2018 and watched as the actively managed mutual fund company had $22 billion of outflows, or a third of its assets, in his first year on the job. He led a turnaround of the business to transition from a traditional mutual fund company to an innovative leader in the active ETF space. Our conversation covers the lessons Kristof learned about culture from his time at Goldman Sachs and JP Morgan, and his application of those lessons to turnaround Harbor. We discuss the challenges of making it happen, the rise of active ETFs, Harbor’s approach to standing out in a crowded field, its manager selection process, distribution, and the future of alternative investments in the ETF space. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 10 October 2024

Dan Ariely is a leading behavioral economist, author, entrepreneur and the James B. Duke Professor of Psychology and Behavioral Economics at Duke University. Dan is a founding partner of Irrational Capital, an investment research firm that quantifies the impact of corporate culture and employee motivation on financial performance.    My initial conversation with Dan two years ago has been one of the most downloaded episodes of the show, and a recent research piece by JP Morgan entitled The Human Capital Factor that highlights his work got me excited to catch up with him again.   Our conversation covers many aspects of his continuing research to identify positive human capital practices and performance in the workplace, including data collection and assessment, gender differences, goodwill, ESG, and changes during Covid. We then turn to the practical application of the research in the capital markets through two indexes and customized research.  We close by talking about Dan’s new research projects and some of his favorite recent answers to his Ask Ariely column in the WSJ.   Learn More Subscribe: Apple | Spotify | Google   Follow Ted on Twitter at @tseides or LinkedIn Subscribe Monthly Mailing List  Read the Transcript 

Transcribed - Published: 10 October 2024

Stephen Nesbitt is the CEO and CIO of Cliffwater, an investment consultant and asset management firm specializing in alternative that oversees a combined $110 billion, including $30 billion in private market interval funds that begin just five years ago. Steve founded Cliffwater in 2004 to serve the burgeoning institutional market for alternative investments and bet the farm with a pivot to managing private credit assets for RIAs in 2019. That shift has been one of the most successful initiatives in the industry in the last five years and catapulted Cliffwater to one of the market leaders and brands serving the RIA community. Our conversation covers Steve's journey as a consultant, formation of Cliffwater, and focus on alternatives. We then discuss his strategic shift to managing assets for RIAs, including the development of a private debt index fund, innovation in fund structures, management of liquidity, distribution in the RIA channel, and new initiatives on the come. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Transcribed - Published: 7 October 2024