Why Focus on Buyouts and Venture

What does it take to build a world-class private equity portfolio for an 800-year-old institution? In this episode, I sit down with Sam Sturge, Head of Private Equity at the University of Cambridge endowment, to discuss how he rebuilt the program with a mandate to generate inflation plus 5% returns for generations. Before joining Cambridge, Sam worked at Morgan Stanley and Partners Capital, and today he oversees a concentrated portfolio of buyout and venture relationships within the university’s £4.5 billion endowment.

Highlights:

• Why Cambridge targets inflation plus 5% and what that implies for private equity allocation
• The belief that buyouts and ventures offer structural advantages over public markets
• Why private equity is ultimately a people business built on 15-year relationships
• How to assess whether a GP is motivated by returns or asset gathering
• The ego divide between great investors and great fundraisers
• Venture scale versus focus and when capital is an advantage or a constraint
• How endowments can leverage long-term capital and university ecosystems as competitive edges
• The DPI slowdown and why fewer LPs competing may create opportunity
• Managing liquidity without relying on distributions
• How Cambridge underwrites NAV marks and detects aggressive valuation behavior
• Why simplicity and strategy discipline drive sustainable alpha
• Structural alpha in venture and the challenge of persistence
• Lessons from managers who expanded too far, learned, and rebuilt trust
• Why networking compounds over decades in private markets

Guest Bio:

Sam Sturge is Head of Private Equity at the University of Cambridge endowment, where he has helped build a concentrated, long-term private equity portfolio across buyouts and venture capital since joining in 2020. Earlier in his career, he worked at Morgan Stanley and Partners Capital, and now focuses on manager alignment, structural alpha, and cultivating long-term GP relationships designed to compound capital over decades.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Sam Sturge:

LinkedIn: https://www.linkedin.com/in/sam-sturge-6211a762/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Cambridge Increased Its Private Equity Allocation (0:55) Building a World-Class PE Portfolio From Scratch (3:10) The Incentive Test for Great GPs (5:30) Venture Capital: Scale vs Capacity Constraints (7:10) Cambridge’s Structural Advantage as an LP (9:34) Why the DPI Crisis Is Actually a Buying Opportunity (10:45) Can You Trust Private Equity NAV Marks? (14:50) Incentives All the Way Down in Private Markets (19:03) When a GP’s Mistake Builds Trust With LPs (24:55) Where Venture Capital Alpha Actually Comes From