Best of Bloomberg Intelligence (07/07/2022)

The video discusses the increased reliance of US endowments on private equity and alternative assets, highlighting the shift from a traditional 60/40 portfolio. It examines the performance of these assets, noting significant declines in venture capital and buyout indices. The discussion includes how some endowments, like Washington University, have benefited from private equity, while others, such as Harvard, have adopted more conservative strategies. The video concludes with the challenges facing private equity, including the narrowing illiquidity premium and rising leverage costs.

What factors might lead endowments to revert back to traditional investment strategies?

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Discuss the implications of the illiquidity premium on private equity investments.

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