Bill Gurley

And then very recently, you probably saw this,

Harvard announced they're in the market selling secondary for a billion.

They have a lot of unique things that would make them be out there.

But even more interesting, Yale has announced that they're in the market looking to sell $6 billion of private equity.

The fact that Yale is the one doing it is super important and super interesting from a historical perspective.

I would argue no single institution's had a bigger impact on the strategy of endowment management than Yale.

David Swenson is the historic- The godfather of this model.

No doubt.

And so Yale, I think they say, had a 13% compounding return over 35 years under David Swenson.

He is known for the Yale model.

And the Yale model is put a lot more money in illiquid assets than liquid assets.

And the reason no one did that originally is there's a lack of transparency.

There's a lack of liquidity.

They're hard to manage.

All this stuff.

But he did it and it worked.

I would suggest that what we might be seeing is the exact result of everyone copying the Yale model.

Howard Marks famously said, you make a lot of money when you do something non-consensus and accurate.

But what if everyone copies David Swenson?

What if everyone goes to 50% illiquid?