Nov 7, 2026, 10:00 AM ETInterview, Fireside Chat

Inside WashU's Endowment Fund | SpaceX Made Up 20% of Out AUM | Scott Wilson

Capital Growth: Managed pool increased from approximately $8 billion at Scott Wilson's start to nearly $20 billion.
Restructuring Effort: Executed a portfolio turnover exceeding 75% via secondary sales and redemptions over an 18-month period.
Hedge Fund Exit: Completely divested from 36–37 hedge funds in the portfolio to eliminate underperforming managers.
Strategic Pivot: Shifted focus from 80–90% time spent with external fund managers to 80–90% time meeting individual companies for direct due diligence.
Performance Impact: The team attributes being at the top of their peer group (rather than average) primarily to direct and co-investment strategies.

Asset Class Indifference: Views public and private equities as functionally similar; distinguishes them only by marking frequency and liquidity constraints.
Target Allocation: Aims for 50% public / 50% private; would target 70–80% private if not constrained by liquidity requirements.
Private Portfolio Structure: Currently allocates >50% of the private portfolio to direct investments and co-investments.
Concentration Targets: Targets the top 50 look-through positions to comprise 50% of the total portfolio; believes quantitative diversification benefits diminish beyond 30 underlying exposures.
Fund Size Bias: Prefers smaller funds ($1B or less) over mega-funds ($10B+), arguing that larger fund sizes force higher valuations and dilute potential returns per dollar.
Direct Sourcing: Does not rely on manager introductions; proactively requests top picks from partners (e.g., "Which 5 companies are you most excited about?") to source deals independently.
Mega-Fund Stance: Avoids mega-funds as they do not require their capital and cannot generate the historical multiples seen in smaller vehicles.

SpaceX Exposure: Held a position in SpaceX representing over 20% of the portfolio at its peak; utilized continuation vehicles and held through IPO to maximize compounding.
Cerebras Holdings: Maintains a large position in Cerebras; took some chips off at IPO but retains exposure based on conviction in the team despite high current valuations.
Valuation Discipline: Willing to walk away from 100x revenue deals (e.g., a specific partner's deal) based on valuation discipline rather than fear of missing out.
Capital Deployment: Identifies "not adding capital to winners" as their biggest mistake; cites missed opportunities to scale into high-conviction positions due to position size bias.
Secondary Market Error: Regrets delaying a secondary sale in late 2021 to "maximize value," missing an exit window where they could have exited at 80–90 cents on the dollar.

Private Market Froth: Believes private markets currently exhibit "stupidity" regarding valuations, with pricing detached from fundamentals (e.g., potential $2T valuations for Anthropic).
Public vs. Private Valuations: Notes that public markets are currently cheaper relative to fundamentals, while late-stage private capital is "chasing" assets at unsustainable multiples.
AI Commoditization: Skeptical of the long-term moat for frontier AI model providers; expects customer switching costs to be low as models become commoditized.
Cycle Expectation: Anticipates a "shakeout" in the AI sector but is uncertain on the timeline; notes that industries can trade at rich multiples for decades before returning to cost of capital.
Market Liquidity: Attributes lack of Direct Proceeds in distributions (DPI) to inflated private valuations rather than closed public markets.

Concentration Limits: Requires board approval for any single name exceeding 4% of the portfolio at cost; no artificial limits on look-through exposure.
LP Communication: Rarely discusses fund performance with Limited Partners; focuses exclusively on underlying asset exposures and thesis verification.
Team Structure: Operates with a generalist team rather than a specialized direct investing unit; no dedicated "direct team" separate from the generalist allocation team.
Board Composition: Suggests the board would benefit from adding members with deep industry expertise (e.g., Elon Musk, Thomas Reardon) to aid in technical due diligence.
Exit Strategy: Utilizes partial hedges and scheduled sell-downs for large public positions; retains positions if the long-term thesis remains intact but fiduciary duty requires risk management.

China Exposure: Active in China with two dedicated staff in Shanghai; believes geopolitical risks are manageable if investing in companies with pragmatic global views.
Europe Opportunity: Finds European assets undervalued relative to US multiples; invests in fintech and non-tech companies where valuations are lower for similar quality assets.
Geopolitical Comparison: Dismisses extreme geopolitical fears (e.g., China's control), noting that confiscatory tax policies in the UK and Norway have been more damaging to investor rights.

Core Philosophy: Advises aspiring investors to "be the best at things that require no talent" (e.g., showing up, curiosity, respect, hard work).
Career Satisfaction: Cites the quality of the board, administration, and team as the primary reasons for staying at Washington University despite high compensation offers elsewhere.
Mentorship View: Credits David Clay for establishing the concentrated co-investment model that defines the current strategy at WashU.
Preferred Manager: Identifies "Leo" (likely a reference to a specific high-trust partner like Leo Gervais or similar) as the most talented investor in the portfolio due to pragmatic pricing and rigorous underwriting.