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Story perspectives

Investment Shift: Yale's Success in Private Assets Undermined

3/1/2025

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Summary

Story summary

The investment industry is shifting away from private assets as their appeal wanes despite higher management fees.
Yale's endowment model, once successful under David Swensen, emphasized skilled manager selection and illiquidity premiums.
Individual investors may struggle to replicate Yale's success without access to top-tier managers.
Success in private assets hinges on effective manager selection, not just fund allocation.

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Story summary

The investment industry is shifting away from private assets as their appeal wanes despite higher management fees.
Yale's endowment model, once successful under David Swensen, emphasized skilled manager selection and illiquidity premiums.
Individual investors may struggle to replicate Yale's success without access to top-tier managers.
Success in private assets hinges on effective manager selection, not just fund allocation.