E62: Babson College's $700M Endowment on Venture Capital

Key Points

• Babson's endowment growth from $400 million to $700 million has been driven largely by their private equity portfolio, which started in 2009.
• Babson's endowment strategy focuses on diversified alpha by leveraging venture and private equity allocations to capture high returns while balancing risk with a robust public portfolio.
• The decision-making process for Babson's private equity investments involves rigorous team evaluation, strategy conviction, and a focus on long-term relationships, ensuring alignment of interests and transparency.