E91: How Elite Endowments Invest in 2024

Renee Hanna, Managing Director of Investments at Baylor University sits down with David Weisburd to discuss how Baylor balances allocation between public and private investments, how its private investments are built around returns hurdles, and thoughts on appropriately sizing commitments. (0:00) Overview of Baylor's $2 billion endowment and asset management strategy (0:43) Different shades of liquidity and investment strategies (1:13) Introduction and welcome (2:26) Evolution and allocation of the private investment portfolio (4:06) Permanent vs. flexible asset allocation and diversification trade-offs (6:22) Evaluating inferior asset classes and venture investment strategies (9:14) Sizing commitments and managing risks in venture capital (13:13) Correlation between asset classes and GP/LP relationships (15:43) Vetting qualitative factors for GPs and referencing potential managers (18:02) Preference and diligence process for spinouts (19:16) Lessons learned and career insights before the financial crisis (21:57) The role of governance in outperforming large endowments (23:48) Personal insights, alignment with Baylor's mission, and closing remarks