E114: Brockenbrough $4.3 Billion Investment Edge

10X Capital Podcast

The 10X Capital podcast interviews the world's premier institutional investors to deliver insights on how they manage their capital. Interview topics include investment decision frameworks, capital allocation strategies, GP/LP relationships and many more.

E114: Brockenbrough $4.3 Billion Investment Edge

E114 • Nov 22, 2024 • 21 mins

Chris Dion, Co-Chief Investment Officer and Managing Partner at Brockenbrough sits down with David Weisburd to discuss what makes small buyout funds resilient, how small buyouts outperform big private equity deals, and why the deal leader matters more than the firm.

Key Points

Small buyout investments have historically provided strong risk-adjusted returns due to lower acquisition costs, lower financial leverage, and operational improvements.
The endowment model, characterized by higher allocations to alternative investments and access to top-tier managers, has been a key driver of superior performance for large endowments over the past few decades.
Investing in smaller private equity funds offers the potential for higher returns without additional risk compared to larger funds, challenging the notion that higher returns always come with higher risk.

Speakers

Chris Dion

Guest • 90%

David Weisburd

Host • 10%

Chapters

0:00	Introduction to Buyout Strategies and the Endowment Model
1:23	Client-First Approach and Long-Term Retention Strategies
3:03	Evolving Practices in OCIO and Endowment Success Factors
8:05	Team Decision-Making and Future Endowment Performance
9:26	Deep Dive into Small Buyouts and Manager Performance
17:49	LPs' Focus on Small vs. Large Buyouts and Anatomy of Returns
20:40	Conclusion and Repeatable Small Buyout Processes
20:51	Sponsor: ${name}

Transcript

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