E320: Why Institutional Capital Avoids the Best Returns

Mar 9, 2026

Jeff Collins, founder of Cloverlay and former Morgan Stanley private markets lead, builds a $2B firm by hunting niche, uncorrelated private assets. He discusses going where capital is absent, building a specialized sourcing flywheel, preserving long-term relationships, evaluating oddball assets like IP and aircraft, and why return dispersion signals opportunity.

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INSIGHT

Go Where Return Dispersion Is Largest

The best returns live in esoteric private assets where return dispersion is largest.
Jeff Collins left Morgan Stanley to target these uncorrelated private assets because operator selection beats market beta in niche markets.

ADVICE

Build A Networked Sourcing Flywheel

Build deep networks inside many small ecosystems rather than relying on conferences or agents.
Cloverlay references operators heavily and returns favors to create an inbound sourcing flywheel over time.

ADVICE

Use Kill Calls To Preserve Dealflow

Hold structured kill calls after passing on deals to preserve relationships.
Tell the seller what you liked, why you passed, and offer introductions to better-suited buyers.

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What if the best private equity opportunities are the ones no one else is set up to pursue? In this episode, I sit down with Jeff Collins, Founder and Managing Partner of Cloverlay, to explore how he built a $2 billion firm by going where capital isn’t. After 14 years at Morgan Stanley Investment Management, Jeff spun out to focus on what he calls “uncorrelated private assets” - niche, often overlooked segments where return dispersion is wide and operator selection matters more than financial engineering.

Highlights:

Why “go where the money isn’t” only works if you build the right organization around it
How Cloverlay built a sourcing flywheel through references and long-term reciprocity
The importance of holding structured “kill calls” to preserve relationships
Why broad dispersion of returns signals opportunity in overlooked markets
How to evaluate niche segments like special mission aircraft, wireless spectrum, and IP
The strategy behind assembling “portfolio premium” assets in industrial outdoor storage
Why uncorrelated private assets can act as ballast in institutional portfolios
How pensions think about completion portfolios and non-beta exposure
The tradeoff between being an A+ specialist versus a well-rounded investor
Why Jeff believes ego should be tied to performance, not AUM growth
The cultural decision to remain focused instead of scaling into adjacent strategies

Guest Bio:

Jeff Collins is the Founder and Managing Partner of Cloverlay, a Philadelphia-based private investment firm managing approximately $2 billion in assets focused on uncorrelated private markets.

Before founding Cloverlay in 2015, Jeff spent 14 years at Morgan Stanley Investment Management, where he led investments across private market strategies and developed a focus on segments with high return dispersion and limited competition.

At Cloverlay, Jeff and his team specialize in niche asset categories ranging from intellectual property and aviation to industrial outdoor storage and other esoteric markets. The firm partners with highly specialized operators and seeks to generate performance through asset selection, structure, and disciplined portfolio construction rather than market beta or leverage.

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 Jeff Collins:

LinkedIn: https://www.linkedin.com/in/jeff-collins-76b7b54/

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) The Strategy: Go Where the Money Isn’t (1:44) Why the Best Opportunities Take 291 Days to Close (3:20) Building Deal Flow Without Bankers or Auctions (7:59) Why Relationships Matter More Than Transactions (11:04) The Power of Proactive Deal Sourcing (14:48) How Small Markets Create Big Returns (19:17) The Role of Uncorrelated Assets in Portfolios (26:39) Why Investors Love Wide Dispersion of Returns (33:38) Turning Gravel Parking Lots Into Institutional Assets (47:27) Why Performance Matters More Than AUM