Stanford Endowment CEO Wallace Urges Caution on Private Equity
- Excess capital driving higher valuations, Robert Wallace says
- Wallace runs Stanford University’s $25 billion endowment
Stanford Management Company CEO Robert Wallace talks with Bloomberg's Jason Kelly at Bloomberg Invest New York about the importance of private equity investment in the Stanford portfolio. (Source: Bloomberg)
Robert Wallace, the head of Stanford University’s $25 billion endowment, urged caution when investing in private equity and venture capital, saying that an excess of capital is driving some company valuations higher.
Wallace, who trained at Yale University under David Swensen, said that while the two asset classes offer the best opportunities for outsize market returns, or so-called alpha, investors need to be selective in choosing managers. There’s a lot of dry powder chasing later stage venture capital investments in particular, he said.