E223: The Art of Capital Allocation at $86 Billion Scale

Oct 8, 2025

In this discussion, Payton Brooks, Managing Director on Future Standard’s Primary Investments team, shares insights from overseeing an $86 billion asset platform. He emphasizes the importance of mid-market private equity for yielding superior returns compared to large-cap firms. Payton dives into the intricacies of sourcing emerging managers, maintaining trust through partnership behaviors, and the benefits of evergreen fund structures in reducing cash drag. His expertise provides a compelling look into capital allocation strategies and building long-term relationships in investment.

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INSIGHT

Unified Alternatives Platform

Future Standard combines institutional and wealth channels across private equity, credit, and real estate with $86B AUM.
The merger unified FS Investments and Portfolio Advisors to deliver institutional-quality access to more clients.

INSIGHT

Wealth Investors Deserve Institutional Access

Payton argues wealth clients should get the same access and approach as institutions via tailored structures.
Future Standard builds evergreen and drawdown vehicles with WIRES to democratize alternatives.

INSIGHT

Alpha Lives In The Mid‑Market

Future Standard is mid‑market focused because mid‑market funds historically outperform large cap by ~350–450 bps.
They will still back large cap if the manager retains a clear differentiation and edge.

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What are the real playbooks behind managing an $86B alternative asset platform—and where do the next decade’s returns actually come from? In this episode, I sit down with Payton Brooks, Managing Director on Future Standard’s Primary Investments team, to unpack the operating system behind a multi-strategy LP: how a combined platform serves both institutions and the wealth channel, why mid-market private equity still offers the best shot at alpha, and how evergreen structures can reduce cash drag while preserving optionality. We cover sourcing (spinouts, emerging managers), what great GPs do in downturns, the co-invest / secondaries / credit toolkit, and the partnership behaviors that earn re-ups across multiple fund cycles.

Highlights:

Future Standard under the FS + Portfolio Advisors merger with ~$86B AUM
How wealth clients access institutional alternatives via structured vehicles
Mid-market outperformance vs. large-cap PE
Operating depth and specialization as scale drivers
Evergreen strategies reducing cash drag
Anchor LPs as credibility signals
Partnership transparency as LP/GP discipline
Co-invest, secondaries & credit augmenting optionality
Patience, credibility & compounding relationships

Guest Bio:

Payton Brooks is a Managing Director on Future Standard’s Primary Investments team, focusing on manager selection and portfolio construction across the private-equity landscape. He joined the firm in 2014, and holds a B.A. from Southern Virginia University and an MBA from the Yale School of Management. Future Standard is a global alternatives platform investing across private equity, credit, and real estate, serving both institutional and private-wealth clients; the firm rebranded from FS Investments in July 2025 following its combination with Portfolio Advisors in June 2023.

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

Stay Connected:

X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Payton Brooks: https://www.linkedin.com/in/paytontbrooks/

Links Future Standards: https://www.futurestandard.com/

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

(0:00) Introduction (0:44) Client base and portfolio construction (1:40) Differences between high net worth individuals and pension funds (3:02) Access for high net worth investors to asset classes (4:05) Characteristics of successful private equity funds and large cap buyouts (9:21) Evaluating middle market managers and building relationships (16:40) Utilizing secondaries, co-investments, and internal team structure (19:01) Traits of elite superstar GPs and repeatable value creation (23:22) Decision-making process and portfolio construction within the buyout fund (28:39) Pension fund investment in Evergreen Fund mechanics and benefits (34:14) Evergreen Fund strategy, market impact, and comparison to drawdown funds (41:32) Challenges and strategies for emerging managers (44:02) Securing anchor investors and LP decision-making (47:58) Importance of time optionality in fund investments (51:08) Balancing early and late fund investments (53:20) Career reflections and advice to younger self (55:23) Enhancing investment knowledge and leveraging partners for insights (57:06) Closing remarks