How LPs Allocate to Venture in 2026: What They Want, What They Don’t | Baylor University CIO
Sep 14, 2026 · 1:16:29
David Morehead, Chief Investment Officer of Baylor University's $2.6 billion endowment, argues that velocity of capital matters more than fund multiples — a 3x growth fund compounding every six years beats a 15x venture fund held 18 years. He explains why Baylor holds about 2.5% of its endowment in Anthropic, why it bought the software crash down 50-60% by betting on human behavior, and why growth equity is its largest private allocation. Morehead details his rule that returns cannot be discussed without time, position sizing of $3 million per underlying company, and why managers must stick to the strategy they raised on. He names permitting as the data center bottleneck, is bearish on Europe, calls private credit overhyped, and argues biotech could be the next major opportunity.
