Capital Allocators – Inside the Institutional Investment Industry Tim Sullivan – Yale’s Private Portfolio (EP.456)
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Jul 14, 2025 
Tim Sullivan, recently retired after 39 years managing Yale's private market portfolios, shares his legendary journey alongside David Swensen. He recounts navigating significant events like the 1987 crash and the dot-com bust while pioneering strategies in private equity and venture capital. Tim discusses the evolution of investment dynamics, emphasizing risk management and partnerships forged during downturns. Reflecting on his legacy, he offers insights into the challenges of future investing and the importance of collaboration in a changing landscape.
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Success Feedback Loop In Venture Capital
- Success in venture capital creates a self-reinforcing feedback loop attracting entrepreneurs and partners.
- Buyouts are more commoditized; operational expertise is key for differentiation.
Balance Vertical Teams and Cohesion
- Have dedicated industry vertical teams to understand companies deeply before investing.
- Beware that too much segmentation can harm firm cohesion and decision-making.
David Swensen's 1987 Bold Move
- David Swensen showed courage by buying equity after the 1987 market crash despite opposition.
- This bold decision set him on a path of long-term success managing Yale's endowment.