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Jan 30, 2023 · 52m · capital-allocators

John-Austin Saviano – Emerging Managers and IC Governance (Capital Allocators, EP.294)

John-Austin Saviano · 34m spoken Ted Seides · 12m spoken
0:00 / 0:00

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In this episode of Capital Allocators, host Ted Seides interviews John-Austin Saviano, founder of High Country Advisors and inaugural CIO of UC Berkeley, on navigating institutional portfolio construction, endowment governance, and actionable playbooks for emerging fund managers. Saviano shares practical frameworks for launching new funds, improving investment committee dynamics, and building resilient investment organizations in tight fundraising markets.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Ted holds 27.8% of the talking time here. How this is scored →

Ted as informed peer 4.5 Guest teaching 4.1 Guest disagreement 0.3 Ted pushing back 0.4
05100:0015:0030:0045:006:20–10:35 · Ted as informed peer 3/10 Early Career in Credit, Venture, and the Moore Foundation Ted opens with standard biographical prompts about John-Austin's transition from credit and venture into endowment management at the Moore Foundation. John-Austin explains how credit fundamentals informed his allocator mindset. The tone is purely collaborative and foundational.10:36–14:45 · Ted as informed peer 5/10 Broadening Perspectives at Cambridge Associates Ted probes the tension between institutional aspirations to replicate Yale's top-decile returns and the reality of consultant-advised pools. John-Austin reframes the role of volunteer investment committees, explaining that avoiding bottom quartile through sound process is often the realistic objective.14:46–19:24 · Ted as informed peer 4/10 Establishing UC Berkeley's Inaugural Investment Office John-Austin details founding the investment office at UC Berkeley amid the post-GFC university financial crisis. He outlines his philosophy of defining assets by behavior rather than label and managing noisy public constituencies.19:25–22:14 · Ted as informed peer 6/10 Strategic Alliances and Knowledge Transfer via Fund of Funds Ted highlights their previous professional relationship when Berkeley invested with Ted's firm, Protégé Partners. John-Austin explains how partnering with specialized fund of funds provided leverage, rapid exposure adjustment, and knowledge transfer for his lean team.22:16–29:45 · Ted as informed peer 4/10 Founding High Country Advisors and the Emerging Manager Playbook John-Austin presents his three-part framework for emerging managers: writing a long-form manifesto, comprehensive business planning, and personal goal alignment. Ted prompts him on his advisory transition and allows him to lay out the full playbook.29:47–37:37 · Ted as informed peer 4/10 Sponsor Announcement: Ridgeline Following a sponsor break, Ted and John-Austin explore manager coaching, storytelling hurdles for introverted founders, and adapting to the current capital-scarce fundraising environment through co-investments.37:38–44:33 · Ted as informed peer 6/10 Investment Committee Dynamics and Governance Best Practices Ted shares industry observations regarding peer comparisons and institutional rivalry distorting incentives. John-Austin details governance best practices, emphasizing clear delegation and the critical, unheralded role of the Investment Committee chair.44:34–52:27 · Ted as informed peer 4/10 Advisory Success Stories, Market Outlook, and Rapid-Fire Questions The conversation concludes with an advisory case study in carbon markets, John-Austin's outlook on capital scarcity in credit, and rapid-fire questions reflecting on career lessons and personal habits.6:20–10:35 · Guest teaching 3/10 Early Career in Credit, Venture, and the Moore Foundation Ted opens with standard biographical prompts about John-Austin's transition from credit and venture into endowment management at the Moore Foundation. John-Austin explains how credit fundamentals informed his allocator mindset. The tone is purely collaborative and foundational.10:36–14:45 · Guest teaching 5/10 Broadening Perspectives at Cambridge Associates Ted probes the tension between institutional aspirations to replicate Yale's top-decile returns and the reality of consultant-advised pools. John-Austin reframes the role of volunteer investment committees, explaining that avoiding bottom quartile through sound process is often the realistic objective.14:46–19:24 · Guest teaching 4/10 Establishing UC Berkeley's Inaugural Investment Office John-Austin details founding the investment office at UC Berkeley amid the post-GFC university financial crisis. He outlines his philosophy of defining assets by behavior rather than label and managing noisy public constituencies.19:25–22:14 · Guest teaching 3/10 Strategic Alliances and Knowledge Transfer via Fund of Funds Ted highlights their previous professional relationship when Berkeley invested with Ted's firm, Protégé Partners. John-Austin explains how partnering with specialized fund of funds provided leverage, rapid exposure adjustment, and knowledge transfer for his lean team.22:16–29:45 · Guest teaching 6/10 Founding High Country Advisors and the Emerging Manager Playbook John-Austin presents his three-part framework for emerging managers: writing a long-form manifesto, comprehensive business planning, and personal goal alignment. Ted prompts him on his advisory transition and allows him to lay out the full playbook.29:47–37:37 · Guest teaching 5/10 Sponsor Announcement: Ridgeline Following a sponsor break, Ted and John-Austin explore manager coaching, storytelling hurdles for introverted founders, and adapting to the current capital-scarce fundraising environment through co-investments.37:38–44:33 · Guest teaching 4/10 Investment Committee Dynamics and Governance Best Practices Ted shares industry observations regarding peer comparisons and institutional rivalry distorting incentives. John-Austin details governance best practices, emphasizing clear delegation and the critical, unheralded role of the Investment Committee chair.44:34–52:27 · Guest teaching 3/10 Advisory Success Stories, Market Outlook, and Rapid-Fire Questions The conversation concludes with an advisory case study in carbon markets, John-Austin's outlook on capital scarcity in credit, and rapid-fire questions reflecting on career lessons and personal habits.6:20–10:35 · Guest disagreement 0/10 Early Career in Credit, Venture, and the Moore Foundation Ted opens with standard biographical prompts about John-Austin's transition from credit and venture into endowment management at the Moore Foundation. John-Austin explains how credit fundamentals informed his allocator mindset. The tone is purely collaborative and foundational.10:36–14:45 · Guest disagreement 1/10 Broadening Perspectives at Cambridge Associates Ted probes the tension between institutional aspirations to replicate Yale's top-decile returns and the reality of consultant-advised pools. John-Austin reframes the role of volunteer investment committees, explaining that avoiding bottom quartile through sound process is often the realistic objective.14:46–19:24 · Guest disagreement 0/10 Establishing UC Berkeley's Inaugural Investment Office John-Austin details founding the investment office at UC Berkeley amid the post-GFC university financial crisis. He outlines his philosophy of defining assets by behavior rather than label and managing noisy public constituencies.19:25–22:14 · Guest disagreement 0/10 Strategic Alliances and Knowledge Transfer via Fund of Funds Ted highlights their previous professional relationship when Berkeley invested with Ted's firm, Protégé Partners. John-Austin explains how partnering with specialized fund of funds provided leverage, rapid exposure adjustment, and knowledge transfer for his lean team.22:16–29:45 · Guest disagreement 0/10 Founding High Country Advisors and the Emerging Manager Playbook John-Austin presents his three-part framework for emerging managers: writing a long-form manifesto, comprehensive business planning, and personal goal alignment. Ted prompts him on his advisory transition and allows him to lay out the full playbook.29:47–37:37 · Guest disagreement 0/10 Sponsor Announcement: Ridgeline Following a sponsor break, Ted and John-Austin explore manager coaching, storytelling hurdles for introverted founders, and adapting to the current capital-scarce fundraising environment through co-investments.37:38–44:33 · Guest disagreement 1/10 Investment Committee Dynamics and Governance Best Practices Ted shares industry observations regarding peer comparisons and institutional rivalry distorting incentives. John-Austin details governance best practices, emphasizing clear delegation and the critical, unheralded role of the Investment Committee chair.44:34–52:27 · Guest disagreement 0/10 Advisory Success Stories, Market Outlook, and Rapid-Fire Questions The conversation concludes with an advisory case study in carbon markets, John-Austin's outlook on capital scarcity in credit, and rapid-fire questions reflecting on career lessons and personal habits.6:20–10:35 · Ted pushing back 0/10 Early Career in Credit, Venture, and the Moore Foundation Ted opens with standard biographical prompts about John-Austin's transition from credit and venture into endowment management at the Moore Foundation. John-Austin explains how credit fundamentals informed his allocator mindset. The tone is purely collaborative and foundational.10:36–14:45 · Ted pushing back 2/10 Broadening Perspectives at Cambridge Associates Ted probes the tension between institutional aspirations to replicate Yale's top-decile returns and the reality of consultant-advised pools. John-Austin reframes the role of volunteer investment committees, explaining that avoiding bottom quartile through sound process is often the realistic objective.14:46–19:24 · Ted pushing back 0/10 Establishing UC Berkeley's Inaugural Investment Office John-Austin details founding the investment office at UC Berkeley amid the post-GFC university financial crisis. He outlines his philosophy of defining assets by behavior rather than label and managing noisy public constituencies.19:25–22:14 · Ted pushing back 0/10 Strategic Alliances and Knowledge Transfer via Fund of Funds Ted highlights their previous professional relationship when Berkeley invested with Ted's firm, Protégé Partners. John-Austin explains how partnering with specialized fund of funds provided leverage, rapid exposure adjustment, and knowledge transfer for his lean team.22:16–29:45 · Ted pushing back 0/10 Founding High Country Advisors and the Emerging Manager Playbook John-Austin presents his three-part framework for emerging managers: writing a long-form manifesto, comprehensive business planning, and personal goal alignment. Ted prompts him on his advisory transition and allows him to lay out the full playbook.29:47–37:37 · Ted pushing back 0/10 Sponsor Announcement: Ridgeline Following a sponsor break, Ted and John-Austin explore manager coaching, storytelling hurdles for introverted founders, and adapting to the current capital-scarce fundraising environment through co-investments.37:38–44:33 · Ted pushing back 1/10 Investment Committee Dynamics and Governance Best Practices Ted shares industry observations regarding peer comparisons and institutional rivalry distorting incentives. John-Austin details governance best practices, emphasizing clear delegation and the critical, unheralded role of the Investment Committee chair.44:34–52:27 · Ted pushing back 0/10 Advisory Success Stories, Market Outlook, and Rapid-Fire Questions The conversation concludes with an advisory case study in carbon markets, John-Austin's outlook on capital scarcity in credit, and rapid-fire questions reflecting on career lessons and personal habits.

speaking balance: gold is Ted, purple is the guest (3 minute bins)

0:00 · Ted 100% · guest 0%0:00 · Ted 100% · guest 0%3:00 · Ted 100% · guest 0%3:00 · Ted 100% · guest 0%6:00 · Ted 25.6% · guest 74.4%6:00 · Ted 25.6% · guest 74.4%9:00 · Ted 6.8% · guest 93.2%9:00 · Ted 6.8% · guest 93.2%12:00 · Ted 23.2% · guest 76.8%12:00 · Ted 23.2% · guest 76.8%15:00 · Ted 7% · guest 93%15:00 · Ted 7% · guest 93%18:00 · Ted 18.8% · guest 81.2%18:00 · Ted 18.8% · guest 81.2%21:00 · Ted 7.4% · guest 92.6%21:00 · Ted 7.4% · guest 92.6%24:00 · Ted 10.6% · guest 89.4%24:00 · Ted 10.6% · guest 89.4%27:00 · Ted 7% · guest 93%27:00 · Ted 7% · guest 93%30:00 · Ted 53.9% · guest 46.1%30:00 · Ted 53.9% · guest 46.1%33:00 · Ted 11.8% · guest 88.2%33:00 · Ted 11.8% · guest 88.2%36:00 · Ted 30.4% · guest 69.6%36:00 · Ted 30.4% · guest 69.6%39:00 · Ted 18.7% · guest 81.3%39:00 · Ted 18.7% · guest 81.3%42:00 · Ted 15.5% · guest 84.5%42:00 · Ted 15.5% · guest 84.5%45:00 · Ted 12.7% · guest 87.3%45:00 · Ted 12.7% · guest 87.3%48:00 · Ted 15.8% · guest 84.2%48:00 · Ted 15.8% · guest 84.2%51:00 · Ted 36.4% · guest 63.6%51:00 · Ted 36.4% · guest 63.6%
Sharpest disagreement ▶ 13:49 Dispelling the illusion of universal top-decile performance

John-Austin gently pushes back on the common client aspiration to beat everyone, noting that volunteer committees with consultants are structured for good process and downside avoidance rather than shooting the lights out.

 Hardest push from Ted ▶ 13:36 Challenging consultant settling for average

Ted challenges John-Austin's description of consultant outcomes, pointing out that every client expects to emulate Yale rather than being told settling above the bottom quartile is sufficient.

 Biggest teaching moment ▶ 25:40 Educating on why track record is merely an output

John-Austin educates listeners and breaks down why sophisticated LPs look past historical returns to examine people, idea quality, and execution coherence through a long-form manifesto.

 Ted holds their own ▶ 19:25 Ted framing fund-of-funds strategic utility

Ted demonstrates deep insider expertise by bringing up how endowments utilize fund of funds for targeted exposure and knowledge leverage, drawing on his own background running Protégé Partners.
the scores for every segment, with the reasoning behind each
ChapterTopicTed as informed peerGuest teachingGuest disagreementTed pushing backWhy
Early Career in Credit, Venture, and the Moore Foundation 3300 Ted opens with standard biographical prompts about John-Austin's transition from credit and venture into endowment management at the Moore Foundation. John-Austin explains how credit fundamentals informed his allocator mindset. The tone is purely collaborative and foundational.
Broadening Perspectives at Cambridge Associates 5512 Ted probes the tension between institutional aspirations to replicate Yale's top-decile returns and the reality of consultant-advised pools. John-Austin reframes the role of volunteer investment committees, explaining that avoiding bottom quartile through sound process is often the realistic objective.
Establishing UC Berkeley's Inaugural Investment Office 4400 John-Austin details founding the investment office at UC Berkeley amid the post-GFC university financial crisis. He outlines his philosophy of defining assets by behavior rather than label and managing noisy public constituencies.
Strategic Alliances and Knowledge Transfer via Fund of Funds 6300 Ted highlights their previous professional relationship when Berkeley invested with Ted's firm, Protégé Partners. John-Austin explains how partnering with specialized fund of funds provided leverage, rapid exposure adjustment, and knowledge transfer for his lean team.
Founding High Country Advisors and the Emerging Manager Playbook 4600 John-Austin presents his three-part framework for emerging managers: writing a long-form manifesto, comprehensive business planning, and personal goal alignment. Ted prompts him on his advisory transition and allows him to lay out the full playbook.
Sponsor Announcement: Ridgeline 4500 Following a sponsor break, Ted and John-Austin explore manager coaching, storytelling hurdles for introverted founders, and adapting to the current capital-scarce fundraising environment through co-investments.
Investment Committee Dynamics and Governance Best Practices 6411 Ted shares industry observations regarding peer comparisons and institutional rivalry distorting incentives. John-Austin details governance best practices, emphasizing clear delegation and the critical, unheralded role of the Investment Committee chair.
Advisory Success Stories, Market Outlook, and Rapid-Fire Questions 4300 The conversation concludes with an advisory case study in carbon markets, John-Austin's outlook on capital scarcity in credit, and rapid-fire questions reflecting on career lessons and personal habits.

Statements from this episode (12)

Insight
Saviano: Evaluating fund managers requires analyzing portfolio company fundamentals directly
“When it goes down to spending time with a fund manager, you go to the assets, you go to the companies to get down to the fundamentals and you start there and you build your understanding up from there.”
John-Austin Saviano Jan 30, 2023 ▶ 8:00
Insight
Saviano: Consultant-driven portfolios will not reach top-decile returns
“And it's the natural thing of a consultant driven pool. You're not going to be top decile. What you're really trying to avoid is you're helping them avoid being bottom quartile. You're helping them really be good stewards of the capital because you're focused …”
John-Austin Saviano Jan 30, 2023 ▶ 13:17
Insight
Saviano: Diversify Portfolios by Asset Behavior, Not Asset Class Labels
“How something behaves is far more important than what it's called. And so when you build an asset allocation, you describe the behaviors that you expect out of that asset, and you build a portfolio, you diversify a portfolio of different behaviors rather than …”
John-Austin Saviano Jan 30, 2023 ▶ 17:01
Insight
Saviano: Public endowments cannot afford top allocator hires and must cultivate internally
“Because again, on a place like Cal, you can't go out and hire the tip top best real assets allocator in the marketplace because you don't have that kind of money. You got to really cultivate, grow people from within. And this was one way of adding leverage to …”
John-Austin Saviano Jan 30, 2023 ▶ 21:59
Assertion Not publicly verifiable
Saviano: UC Berkeley Allocated One-Third of Capital to Emerging Managers
“About a third of our capital across different and different parts of the portfolio went to firms that would really reasonably be considered emerging.”
John-Austin Saviano Jan 30, 2023 ▶ 23:25
Assertion Not checkable as stated
Saviano's only disastrous fund investment was an established franchise fund
“The only disaster fund, really, truly disaster fund I ever invested in was not an emerging manager. It was a high Roman numeral fund that had a murderous row of great LPs invested in it.”
John-Austin Saviano Jan 30, 2023 ▶ 25:05
Insight
Saviano: A founder's key test is recruiting talent with better options
“One of the early markers is, can you compel someone to join your team who's had better options than taking a risk on your startup idea or your new firm? That's a great marker. You're telling people that are experienced and have other options, something that th…”
John-Austin Saviano Jan 30, 2023 ▶ 33:20
Insight
Saviano: LPs pull back on blind pools but always fund great deals
“Blind pool, committed capital is incredibly scarce right now because there's so many other things that are taking LPs time and attention, but people always say yes to a great deal in an environment where there are lots of things going on. If you've got an extr…”
John-Austin Saviano Jan 30, 2023 ▶ 35:53
Insight
Saviano: Emerging fund managers should lean into co-investments
“The idea is for a lot of fund managers, To take some lessons from a fundless sponsor, leaning into taking more co-investments so your fund dollars go longer, you're buying yourself more time of capital deployment, while at the same time, you're also increasing…”
John-Austin Saviano Jan 30, 2023 ▶ 36:10
Insight
Saviano: Peer comparison among universities is an enormous distraction for CIOs
“So one thing that comes up a lot for CIOs is I would say the peer comparison. This is especially true for colleges and universities where there's just such a football game approach to it and whose school is beating whose. And I think it's an enormous distracti…”
John-Austin Saviano Jan 30, 2023 ▶ 38:08
Assertion Supported
Saviano: Some endowment CIOs have compensation benchmarked against rival schools
“You have CIOs that have compensation that is benchmarked against how they did versus their rival schools.”
John-Austin Saviano Jan 30, 2023 ▶ 39:06
Insight
Saviano: Governance quality is the top determinant of long-term fund success
“The most important determinant of long-term success for any pool of capital is the quality of its governance. And that starts with the investment committee chair.”
John-Austin Saviano Jan 30, 2023 ▶ 44:06
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