How I Invest with David Weisburd
E86: Investing $20+ Billion for Nonprofit Institutions - Michael Miller
Aug 15, 2024
Michael Miller, CIO at Crewcial Partners, discusses the intricacies of investing for nonprofit institutions. He dives into portfolio construction, emphasizing the balance between liquidity and returns. Insights on navigating asset classes during downturns and the importance of trust between Limited and General Partners are shared. Miller also touches on the impact of political engagement in venture capital and the role of resilience in making long-term investment decisions. His unique perspective sheds light on the challenges and strategies required in the nonprofit investment landscape.
36:46
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Quick takeaways
- Nonprofit institutions focus on achieving long-term capital growth while managing liquidity and meeting annual distribution requirements effectively.
- Counter-cyclical investing in 'out-of-favor' asset classes can enhance returns and support nonprofit missions during market downturns.
Deep dives
Investment Allocation Strategies
A well-structured investment portfolio typically begins with bonds and cash at the foundation, ensuring sufficient liquidity. Following this base, public stocks provide a balance between potential returns and liquidity, though they are generally expected to yield lower returns compared to private equity. Public equity can be a dependable source of micro-level liquidity, especially when diversifying across different sectors. Private equity, while focused on maximizing returns, presents the challenge of illiquidity, necessitating careful management of liquidity needs.
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