How LPs Allocate to Venture in 2026: What They Want, What They Don’t | Baylor University CIO

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:…