How have you been a change agent at your organization? What have you done that you’re particularly proud of?
I am most proud of how our team has been able to transform a traditional private equity program (focused on funds and fund-of-funds) into a high-performing, forward-thinking program consisting of alpha-generating fund managers, large opportunistic separate accounts, high-growth co-investments, and direct investments. Across asset classes, we are encouraged to think creatively. This has driven us to build a program that leverages external resources and technology to opportunistically invest in private equity.
What is the asset class or investment that keeps you up at night, and why?
I can’t think of one that doesn’t worry me! The accelerated flow of capital into private markets, all-time high public equity valuations and near zero interest rates make it difficult to see how high returns are going to continue to be generated.
What methodologies have you adopted within your institution?
We have continued to raise the bar for our investments as the markets have gotten more competitive and expensive. Today, we will only lock up capital into private equity investments if the manager has proven they can create value in excess of what we could have replicated in the public markets. We have become highly focused on investing with managers who we believe can generate alpha regardless of the economic environment and on investments where we believe the downside is limited.
Where do you fall in the passive vs. active debate?
Passive seems to be winning the debate currently. However, there are highly skilled active managers who have consistently created value and are deserving of an allocation.
What are the changes you’d like to see the institutional investing community make in 10 years?
More communication and information sharing amongst institutional investors. We all face similar challenges, yet don’t come together often enough to share ideas on trends, investments, or managers.
Who is a manager you don’t currently work with whose brain you’d like to pick?
Investors who are patient, don’t get caught up in the “flavor of the day,” believe business fundamentals drive returns, and have a contrarian approach to investing are particularly interesting to me. Warren Buffett, Jeremy Grantham, and Howard Marks would be an amazing roundtable.
Ideally, where would that meeting take place?
In a London pub.
What software investment tool that helps you most?
We leverage a handful of great web-based products for diligence and monitoring.
What would improve the relationship between you and managers?
More transparency and being more proactive on investor communications. Good or bad, it’s always better to let us know what is going on.
Why did you choose your current path?
I am fascinated by the constant variety of companies and investment strategies I come across. The opportunity to constantly learn from and talk to high-caliber individuals makes this job exciting.