E86: Investing $20+ Billion for Nonprofit Institutions - Michael Miller

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.

E86: Investing $20+ Billion for Nonprofit Institutions - Michael Miller

E86 • Aug 15, 2024 • 37 mins

Michael Miller, CIO at Crewcial Partners, sits down with David Weisburd to discuss how nonprofit institutions invest, how they think about portfolio construction, and how they manage liquidity.

Key Points

Nonprofit institutions can achieve their long-term capital goals by maintaining a diversified portfolio that includes a mix of public equities for liquidity and private equity for higher returns, while also managing liquidity risks carefully.
Investment committees at nonprofits are most effective when they consist of a diverse group of individuals with complementary skills and a shared commitment to long-term goals rather than short-term performance.
Spinouts from established investment firms offer significant advantages due to the founders' experience and smaller asset bases, but require careful evaluation of any potential weaknesses that may not be immediately apparent.

Speakers

Michael Miller

Guest • 82%

David Weisburd

Host • 18%

Chapters

0:00	Introduction to Michael Miller and Crucial Partners
1:57	Investment Target Allocation Overview
3:41	Nonprofit Investment Strategies and Distribution Requirements
6:42	Private vs. Public Equity: Balancing Long-term and Short-term Investments
9:08	Asset Management Approach: Discretionary vs. Nondiscretionary
10:35	GP/LP Relationships and the Importance of Transparency
12:25	Embracing Inefficiency and Capacity-Constrained Managers
14:47	The Role of Sticky Capital in Asset Management
16:19	Leveraging Client Base to Access Top Managers
17:27	Understanding the True Priorities of LPs
19:01	Venture Capital in the Face of Political Activism and Social Media
20:50	Strategies for Building a Venture Portfolio in the Current Year
22:25	The Impact of Interest Rates on New Venture Investments
24:44	Nonprofits: Balancing Mission with Investment Returns
25:34	Investment Committee Dynamics and Composition
27:20	Addressing Incentive Issues within Nonprofit Committees
28:15	Fund Concentration and Client Allocation Strategies
30:07	Evaluating Spinouts and Early Investment Opportunities
33:45	The Concept of Aspirational Investing
34:45	Avoiding Conformity in Investment Decisions
36:03	Sticking to Core Principles for Long-term Success
36:28	Conclusion and Future Episode Teaser
36:40	Sponsor: Acme Investments

Transcript

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