IT'S ALL ABOUT ALTERNATIVE INVESTMENTS
- In 1985, a Yale economics PhD by the name of David Swensen became the Chief Investment Officer (CIO) of the Yale endowment.
- The endowment at the time was worth $1 billion.
- As of June 30, 2023, the endowment was worth $40.7 billion, earning a 10% annualized return (with less risk).
- David’s approach to institutional investing became known as “the Yale Model” and has been replicated endowments, foundations and pension funds everywhere.
- How did David do it?? By giving up the commitment to the 60/40 investment allocation model that dominated institutional investing until then and diversifying a portion of the portfolio into alternative assets such as venture capital, private equity and real estate private equity.
- The mission of Trailblazers Advisory Group is to bring awareness of this investment class, and specifically real estate private equity, to the first-gen community.