The Twenty Minute VCHow LPs Allocate to Venture in 2026: What They Want, What They Don’t | Baylor University CIO
Episode Details
EPISODE INFO
- Released
- September 14, 2026
- Duration
- 1h 16m
- Channel
- The Twenty Minute VC
- Watch on YouTube
- ▶ Open ↗
EPISODE DESCRIPTION
David Morehead is one of the most respected CIOs in the endowment fund world as Chief Investment Officer at Baylor University, overseeing its $2.6BN endowment. Before joining Baylor in 2011, he was a senior portfolio manager at several Chicago hedge funds, investing across corporate securities, distressed debt and public and private energy. ----------------------------------------------- Timestamps: 00:00 - Intro 01:26 - How Baylor Invests a $2.6BN Endowment 08:01 - How Should an Endowment Build a Portfolio? 11:02 - Why Private Markets Exist to Make Money 12:38 - Big-Name VC Funds vs Emerging Managers 13:56 - Are Venture Funds Simply Too Long? 14:28 - Why a 15x Venture Return Can Be Worse Than a 3x Growth Return 15:43 - Why Velocity of Capital Matters More Than Fund Multiple 17:08 - Why Would an LP Invest in Venture at All? 18:45 - Baylor Has 2.5% of Its Endowment in Anthropic 20:48 - Why Baylor Bought the Software Crash 26:05 - Why Public Markets Can Teach You More Than Venture 27:19 - Are Public Markets Actually More Rational Than Private Markets? 29:07 - Can LPs Trust Private Market Valuations? 31:20 - Why Baylor Prefers Growth Equity to Venture 33:33 - How Much Liquidity Should an Endowment Keep? 36:13 - The Biggest Lesson From Losing Money 37:43 - How to Buy Into a Falling Market Without Going All In 47:14 - Are LP Incentives Broken? 48:11 - Is AI Making Humans Worse at Thinking? 53:07 - How Big Does a Fund Position Need to Be to Matter? 55:35 - Should VCs Stick to the Strategy They Raised On? 01:01:04 - Do LPs Really Need 3 Funds to Judge a VC? 01:03:54 - Why Huge Venture Funds Get Harder to Underwrite 01:05:15 - The Hidden Bottleneck in the AI Data Center Boom 01:09:46 - Why Baylor Is Bearish on Europe 01:11:33 - Why Private Credit Is Overhyped 01:13:41 - Why Biotech Could Be the Next Major Investment Opportunity ---------------------------------------------------------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on X: https://twitter.com/HarryStebbings Follow David Morehead on X: https://twitter.com/CIO_Baylor Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #20vc #harrystebbings #ai #cio #fund #investing #bayloruniversity #davidmorehead
SPEAKERS
David Morehead
guestCIO of Baylor University, responsible for endowment portfolio construction and manager selection across public and private markets.
Harry Stebbings
hostFounder and host of The Twenty Minute VC (20VC) and a venture investor who interviews leading founders and investors.
EPISODE SUMMARY
In this episode of The Twenty Minute VC, featuring David Morehead and Harry Stebbings, How LPs Allocate to Venture in 2026: What They Want, What They Don’t | Baylor University CIO explores baylor CIO on venture: prioritize capital velocity, liquidity, and discipline Baylor’s CIO David Morehead frames private markets as purely instrumental—valuable only insofar as they generate excess dollars for university missions amid worsening higher-ed demographics and rising reliance on endowment distributions.
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