Capital Allocators – Inside the Institutional Investment Industry

Charley Ellis, a renowned investment expert and founder of Greenwich Associates, discusses the evolution of equity research since the 1960s. He elaborates on the rise of indexing as a successful strategy and the exceptional qualities of top active managers like Vanguard and Yale University's endowment. Charley shares insights on the balance between index funds and the need for active advice, emphasizing personal clarity in investing. His engaging storytelling brings to life the shifts in financial strategies and the importance of mentorship and partnerships in achieving success.

This discussion dives into the intricacies of private equity carve-outs, specifically Advent International's acquisition of Orveon from Shiseido. Discover the strategic maneuvers and operational hurdles faced in managing multiple beauty brands during the purchase. With a track record of 80 similar deals, the insights shared reveal the art of navigating complex transactions in the investment landscape.

Sachin Khajuria, a former partner at Apollo and a 25-year veteran of private equity, discusses his book "Two and Twenty," which provides an insider's look at the industry. He emphasizes the strengths and weaknesses of private equity, stressing the need for better communication and broader profit distribution. The conversation highlights the importance of strategic deal sourcing, collaboration, and adapting investment strategies in a challenging market. Khajuria also shares personal insights on values, hobbies, and the role of family in his investment philosophy.

In a captivating discussion, Thomas Majewski, Managing Partner and Founder of Eagle Point Credit Management, dives deep into the world of CLO equity, a unique investment with a solid track record. He shares insights from his rich career in structured finance, including the mechanics behind CLOs and strategic investment processes. Majewski also touches on the role of collateral managers, the resilience of CLOs during financial crises, and the evolution of investment strategies, providing listeners a fascinating look at opportunities in this often-overlooked asset class.

Charles Van Vleet, the CIO of Textron, oversees $15 billion in pension assets and is known for his innovative approach to institutional investing. He discusses the importance of cognitive diversity in leadership and investment strategies. Van Vleet emphasizes a paradigm shift from traditional liability-driven investing towards a focus on absolute returns. He also shares insights on navigating co-investing challenges and the significance of mentorship in both finance and personal growth, all while challenging conventional asset classifications at Textron.

Dive into the intricate world of healthcare investments with Bain Capital as they discuss their recent acquisition of Zelis. This deal highlights the essential role Zelis plays in managing the complexities of medical claims. Discover how Bain Capital strategically addresses pressing needs in healthcare and fintech. The conversation reveals the innovative mindset behind navigating such crucial investments.

Frank Brosens, co-founder of Taconic Capital and former risk arbitrage desk leader at Goldman Sachs, shares his fascinating journey in finance. He discusses the successful culture at Goldman that fostered hedge fund founders and highlights Taconic’s partnership-focused philosophy. Brosens emphasizes the significance of risk management and capital allocation during financial crises. He reflects on personal motivations and shares life lessons about patience and empowering others, intertwining personal anecdotes that reveal the essence of professional growth.

Melanie Pickett, Executive Vice President at Northern Trust, shares her extensive experience in investment operations and technology. She discusses the challenges of integrating modern tech solutions in the investment office and the evolution of Northern Trust’s services for asset owners. Topics include the shift towards a dynamic total portfolio approach, the importance of data science in making informed investment decisions, and the essential role of empathy and collaboration in enhancing client engagement. It's an insightful look into the future of institutional investing.

Geoffrey Rubin, Senior Managing Director and Chief Investment Strategist at CPPIB, shares insights on managing a colossal $520 billion portfolio for Canadians. He discusses his transition from academia to investment and how CPPIB evolved from passive to active management. The conversation highlights effective governance, the complexity of global investment strategies, and the significance of nurturing talent in challenging market conditions. Rubin emphasizes collaboration and a long-term approach in investment philosophy, showcasing the unique Canadian culture that drives CPPIB's success.

Discover the intriguing world of private equity as the discussion dives into Innovyze, a mid-market software company revolutionizing smart water infrastructure. Unpack the complexities of merging two carve-outs from public companies and learn about the strategic decisions behind significant management changes. This conversation unravels the challenges and considerations that come with such intricate transactions, making it a must-listen for anyone interested in the nuances of private equity.