E32: Ashby Monk, Stanford Professor on How to Become a Billionaire in Private Equity

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.

E32: Ashby Monk, Stanford Professor on How to Become a Billionaire in Private Equity

E32 • Jan 11, 2024 • 57 mins

Ashby Monk, Executive and Research Director at Stanford sits down with David Weisburd to discuss the role and operation of asset owners like pension funds, endowments, and more. They delve into compensation in these fields, the state of pension funds in the US, and their impact on private equity.

Key Points

Institutional investors often struggle with maximizing risk-adjusted returns due to bureaucratic constraints and insufficient compensation structures for their staff.
The Canadian model demonstrates a successful approach to pension fund management by internalizing investment teams and focusing on transparency and cost reduction.
Emerging managers typically start with family office investments and gradually build credibility before securing endowment and pension fund commitments.

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Speakers

Ashby Monk

Guest • 84%

David Weisburd

Host • 16%

Chapters

0:00	Introduction to Ashby Monk and the Stanford Long Term Investing Research Center
2:05	Exploring the $140 trillion asset class with research projects
5:51	The significance of a dedicated research program in engineering
8:23	Examining compensation and the Canadian pension model
15:43	The evolution from defined benefit to defined contribution plans
16:39	Sponsor: Bidav Insurance Group
17:09	Discussing organizational capabilities and asset allocation strategies
22:29	Overcoming bureaucracy and the importance of mission-driven staff
27:22	The billionaire pathway in asset management
30:09	Fund life cycle and the progression of asset investors
34:37	Early adopters and innovation in the endowment and pension fund space
39:09	Evaluating GP staking and venture capital management best practices
44:33	Scaling venture capital funds and track record building
46:42	Technological developments for institutional investors
48:51	Cash optimization strategies for pension funds
50:33	Current entrepreneurial projects and future outlook
52:32	Final insights on the asset owner community and the importance of emerging managers
55:02	Additional resources and acknowledgments

Transcript

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