Capital Allocators – Inside the Institutional Investment Industry
WTT: Yale Backs Emerging Managers… and Then What?
Oct 25, 2024
The discussion dives into Yale's innovative Prospect Fellowship, aimed at nurturing emerging managers through capital and mentorship. It highlights the motivations behind the program and the potential risks of oversubscription. The talk addresses the challenges participants may face while underlining Yale's impressive history of identifying promising investment talent. Exciting prospects and unintended consequences are explored, making it a pivotal moment for emerging managers in the investment landscape.
16:05
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Yale's Prospect Fellowship aims to enhance its investment returns while supporting emerging managers, though it risks attracting lower-quality applicants due to a less rigorous selection process.
- The fellowship provides emerging managers with critical capital and mentorship from Yale, but failing to graduate to Yale's main portfolio could harm their future funding opportunities.
Deep dives
Yale's Motivations Behind the Fellowship
Yale's primary motivation for launching the Prospect Fellowship program is to generate substantial investment returns while reaffirming its position as a leading capital provider for emerging managers. The program functions as a venture capital portfolio where Yale will invest in a select group of managers, aiming for high inflation-adjusted returns that align with the university's financial goals. This initiative allows Yale to attract promising investment founders by enhancing its brand and reputation within the industry. By investing small amounts in various managers, Yale can potentially scale its commitment to successful candidates significantly, reinforcing its long-standing investment strategy established by David Swenson.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
