How I Invest with David Weisburd E62: Babson College's $700M Endowment on Venture Capital
Apr 30, 2024
Trish DiGirolomo from Babson College discusses scaling the endowment via disciplined strategy, focusing on cash returns and manager selection. They delve into maximizing VC returns in novel concepts, strategic investments in private equity, and navigating partner dynamics within LPs.
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Private Equity Advantage
- Access to top private equity managers, especially in venture capital, can yield significant long-term returns.
- Evergreen capital allows for higher risk and illiquidity, leading to increased returns.
Low Liquidity Needs
- Babson Endowment's relatively low liquidity needs (7% of operating budget) allow it to prioritize long-term growth.
- This approach enables reinvestment and maximizes the impact of the endowment.
Benefitting from the 2009 Start
- Starting the portfolio in 2009 after the financial crisis allowed Babson to capture strong vintages.
- This longevity has contributed to significant AUM growth.