The Inefficiency Advantage: Why the Best Alpha Lives in Private Markets' Hidden 90% - Raphi Schorr
For wealth professionals assessing private markets allocations, the episode offers an allocator's view of access, manager selection and fragmented market segments. It is grounded in how one firm describes finding opportunity where information is poor and competition is limited.
Summary
By the alternatives in wealth deskThis episode of The Distribution features Brandon Sedloff and Raphi Schorr of HighVista Strategies discussing inefficient private markets as a source of alpha. Schorr describes how the firm deploys $14 billion across lower middle market private equity, venture capital, private credit and public biotech, and discusses manager access, fund-one backing and GP-led secondaries.
- HighVista's deputy CIO describes deploying $14 billion across lower middle market private equity, venture capital, private credit and public biotech.
- The discussion covers why lower middle market private equity operates beneath the radar of most institutional investors and how pattern recognition helps identify managers and companies.
- The episode examines backing fund-one venture capital managers and the venture capital power law.
- It covers the rise of GP-led secondaries in the lower middle market as sponsors seek to hold assets longer.
Chapters
From the publisher’s description| Time | Chapter | Length |
|---|---|---|
| Intro | 2 min | |
| Mathematics and early investing exposure | 4 min | |
| From physics to operations research | 3 min | |
| Joining HighVista and the shift to private markets | 3 min | |
| Building the firm from day one | 4 min | |
| What HighVista does today | 4 min | |
| Inefficient markets and where alpha lives | 5 min | |
| Pattern recognition in lower middle market PE | 3 min | |
| Balancing analytics with relationships | 3 min | |
| Access and the venture capital power law | 4 min | |
| Backing fund one managers | 8 min | |
| Creating optionality through early partnerships | 6 min | |
| Structural themes for the next 36 months | 4 min | |
| What keeps Raphi up at night | 2 min | |
| Closing thoughts on talent and opportunity | 2 min |
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Videos and podcasts are embedded from their publishers. Selections and summaries are editorial and are not investment advice.