Navigating Private Equity: Insights into Lower Middle Market Strategies

In this episode of How I Invest, I speak with Brendon Parry, Head of Private Markets, Deputy CIO, and Managing Director at TIFF Investment Management. Brendon shares insights on TIFF’s mission to serve nonprofit institutions through tailored investment solutions. He discusses the importance of private market investments, the legacy of leaders like David Swensen, and how TIFF partners with foundations to achieve long-term financial goals. Tune in for actionable strategies and valuable perspectives from a seasoned investment professional.

Disclaimer: Brendon Parry, CFA, is the Head of Private Markets, Deputy CIO at TIFF Investment Management. All views expressed by him on this podcast are solely his opinions and do not reflect the opinions of TIFF. You should not treat any opinions expressed by Brendon as a specific endorsement to make a particular investment. References to any securities are for informational purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Any past performance discussed is not indicative of future results. Please keep in mind that investment in a fund entails a high degree of risk, including the risk of loss. Please note that the ads featured in this podcast are not endorsed by TIFF, and TIFF is not a sponsor of these ads.

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Highlights: TIFF’s Mission: How TIFF Investment Management supports nonprofits with specialized investment solutions.

Private Markets Expertise: Insights into early-stage venture capital, lower middle market buyout, and growth equity investments.

Partnership Approach: How TIFF collaborates with nonprofits of various sizes to customize portfolios and deliver long-term returns.

Legacy of Leadership: The influence of David Swensen, former Yale CIO, on TIFF’s investment philosophy.

Risk Management: Strategies for balancing risk and reward in complex market environments.

Career Insights: Lessons from Brendon’s journey in private equity and investment management.

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Guest Bio: Brendon Parry is the Head of Private Markets, Deputy CIO, and Managing Director at TIFF Investment Management. He has been with TIFF since 2011, leading the firm's private markets initiatives with a focus on early-stage venture capital, lower middle market buyout, and growth equity. Before TIFF, Brendon worked at Providence Equity Partners and Cambridge Associates. He holds an AB in Economics from Brown University and an MBA from Harvard Business School. With a passion for helping nonprofits achieve their financial goals, Brendon plays a key role in TIFF’s mission.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at dweisburd@gmail.com.

We’d like to thank @Carta for sponsoring this episode!

#VentureCapital #VC #Startups #OpenLP #AssetManagement

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Sponsor: At Carta, we’re on a mission to connect the participants in private capital — from investors and LPs to their portfolio companies — through a suite of financial intelligence and reporting software that’s purpose-built for venture capital and private equity. Since 2018, we’ve been empowering GPs, CFOs, and CEOs to escape obsolete systems of disconnected FP&A tools — all in favor of a single, unified software suite that helps them make impactful strategic decisions and deliver outstanding results for their investors. Learn more at: carta.com/howiinvest.

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Stay Connected: X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Brendon Parry: https://www.linkedin.com/in/brendon-parry-77a5677/

Links: TIFF Investment Management: https://www.tiff.org/private-markets/

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Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com.

(0:00) Episode preview (2:06) TIFF's mission and partnership with foundations (4:01) TIFF's investment strategies with a focus on private markets (7:01) Reasons for focusing on lower middle market and early stage VC (9:02) Sponsor: Tactic by Carta (10:09) Risk assessment in lower middle market PE vs. larger PE (23:11) Historical performance comparison: fund ones vs. fund twos (24:42) Diligence process for independent sponsors (27:01) Coordinating sponsor and deal diligence teams (27:37) Organizational changes and lessons from 14 years at TIFF (32:05) Building an antifragile portfolio and the confidence paradox in investing (37:31) Predicting the future and core principles in manager selection (41:35) Closing remarks