How to Think Like a CIO: Strategy, Structure, and Staying Power

Aug 6, 2025

Brian O'Neil, former Chief Investment Officer of the Robert Wood Johnson Foundation, shares his wealth of experience in venture capital. He highlights the current challenges in the sector, including excessive funding and the shift towards profitability. Brian emphasizes the importance of diversification and patience in investing while navigating the complexities of private equity. He also discusses the potential of AI and personalized medicine, and the critical need for relationship-building among emerging managers. His insights offer a valuable perspective for allocators looking to succeed in this evolving landscape.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ANECDOTE

Early Venture Capital Anecdote

Brian O'Neil recalled turning down a venture capital pitch from Kleiner Perkins in 1981 at Equitable Life.
This decision highlighted the limited initial exposure of large institutions to venture capital compared to leveraged buyouts.

INSIGHT

Capital Excess Shrinks Venture Returns

Excessive capital inflow into venture capital drastically reduces returns compared to leveraged buyouts.
Venture capital returns collapse more sharply with excess funding than leveraged buyouts do.

ADVICE

Shrink Private Commitment Budgets

Allocators are shrinking private market commitment budgets amid poor private returns and capital call streams.
Priority should go to re-ups on trusted funds, which can leave little room for new fund commitments.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

This week on Swimming with Allocators, Earnest and Alexa welcome Brian O'Neil, a veteran CIO with over four decades of investment experience, who provides a candid overview of the current venture capital landscape. Brian discusses the challenges facing venture capital, including excessive funding, prolonged private company lifecycles, and the shift from growth-at-all-costs to profitability. He also emphasizes the importance of diversification, understanding investment portfolios, and the need for patience when approaching venture investments. Key insights include the difficulty of finding top-quartile venture funds, the potential of AI and personalized medicine, and the critical role of relationship-building for emerging managers. Brian advises allocators to be selective, learn across asset classes, and recognize that venture capital requires a long-term perspective with an acceptance that many investments may not succeed. Don’t miss this great conversation.

Highlights from this week’s conversation include:

Early Days of Venture and LBOs (1:23)
Performance of LBOs and Venture Capital (2:27)
Allocator Approaches to Private vs. Public Markets (4:35)
Continuation Funds and LBO Fund Lifecycles (6:42)
Comparing Current Venture Downturns to History (8:22)
Growth Equity and Venture Stage Reclassification (11:41)
AI Hype and Venture Market Cycles (13:17)
Time Horizons and Commitment Budgets (15:43)
Advice for Allocators on Manager Selection (18:55)
Co-Investment Trends in Private Equity (21:01)
Lessons from CIO Experience (25:01)
Advice for New Allocators (26:29)
Advice for Emerging Managers (31:05)
Exciting Trends in Venture: AI and Personalized Medicine (33:20)
Final Thoughts and Takeaways (35:52)

Brian O’Neil is the former Chief Investment Officer of the Robert Wood Johnson Foundation and has served in investment leadership roles for over 40 years, including at Equitable Life and AXA Investment Managers. He currently serves on the board of the Brooklyn Public Library and is an Investment Committee member at The Wallace Foundation.

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of the world’s most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB’s parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com.

Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies.

The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.