Private Assets
topic on 3 shows · 15 statements across 12 episodes
Innovators & Investors 
A Product Market Fit Show 
Capital Allocators
15 statements about Private Assets, every show
NYU's endowment held less than 15% in private assets before Knudsen
“When I got to NYU, less than 15% of the endowment was in private assets.”
VCU's Endowment Caps Its Private Market Allocation at 25 Percent
“We only have about 20 to 25% of our portfolio in private assets.”
Private Asset Obsession Destroyed Endowments' Ability to Invest Countercyclically
“Historically, endowments have done a great job of that, but in the last 10 or 15 years with the obsession of private assets, that tool has been taken out of the toolkit.”
Kleinman: 401(k) Market Is $13 Trillion with Essentially Zero Private Assets
“And for one K is going to open up to private assets. That's a 13 trillion dollar market that has essentially zero private assets in it.”
Kleinman: Mutual Funds and ETFs Will Blend Private Assets into Products
“Traditional asset managers, i.e. Mutual funds, ETFs, they're gonna start injecting some amount of private assets blended into their products.”
Varma: 401(k) alts will grow private assets to $25T-$30T in 4-5 years
“And I feel like if you look at private assets the market today is high teens, trillions, call it 18 trillion. You know, the executive order just came out in August to allow alternative assets into four or one case, which will make this a 25 to 30 trillion doll…”
Marquez: The sheer volume of private assets dwarfs public securities
“The sheer volume of private assets dwarfs. Public securities.”
Eichhorn: Unmarked private assets are typically riskier than public equivalents
“Private assets don't get marked at all, and that doesn't make them less risky. In fact, they're probably more risky, typically, than a public market equivalent.”
Freno: Insurance balance sheets remain predominantly liquid despite private asset growth
“Despite how much the exposure, I will say, on an insurance company's balance sheet to private assets, it's still largely liquid assets.”
Ivascyn: Private assets typically deliver 200-300+ bps incremental return over public
“Apples to apples comparisons, you've typically over a full cycle been able to generate two, 300, or even more basis points of incremental return in a private asset versus a public asset.”
Accounting stability in private assets may induce a negative illiquidity premium
“I'm even concerned that there are some large institutional investors who would be willing to pay up for the accounting stability of private assets, which might In some points of the cycle, induce a negative illiquidity premium.”
Garcia: Private assets are active management vehicles, not distinct asset classes
“We view private assets as not asset classes. We view the private assets as another way to access active management or alpha.”
Garcia: Private asset tracking error against public benchmarks catches up over 3-5 years
“The tracking error that we're generating from our private assets, a good chunk of that is really this lagged effect relative to our public market equivalents. It catches up over a three-year rolling, a five-year rolling period, but that's really where the slip…”
Triplett: Private investments make up approximately half of Duke's portfolio
“Privates are about half of the portfolio now, and so those are some things that I think given the risk culture at Duke, we're able to do.”
Private Toll Road Traffic Foreshadowed the GFC by Four Months
“We went back and looked at, you know, that profile of traffic, and it fell off About three to four months before the GFC, it actually fell off a cliff, and it's sort of one of those things that within our wider QIC business we're becoming more aware of is the …”