How the Yale Endowment Model Is Evolving for VC

In Venture Capital Investor Episode 3, hosts Lucas and Luna unpack how the Yale Endowment model — the portfolio approach that made David Swensen famous — is being rethought for modern venture capital. They zero in on a specific case: the University of Texas Investment Management Company (UTIMCO), which in 2025 shifted 8 percent of its endowment into direct venture co-investments, bypassing traditional fund-of-funds. Lucas explains why the old 30 percent target to private equity is getting squeezed, how liquidity concerns are forcing LPs to rethink pacing, and what the rise of continuation funds means for limited partners. Luna pushes back on whether individual VCs should care about endowment strategy at all. The conversation includes a sincere donation appeal — buy me a coffee dot com slash fexingo — and closes with a forward-looking question about democratization. No hype, just the math and the trade-offs. #YaleEndowment #DavidSwensen #UTIMCO #VentureCapital #LimitedPartners #EndowmentInvesting #PrivateEquity #PortfolioConstruction #DirectInvesting #ContinuationFunds #LiquidityManagement #InstitutionalInvesting #AssetAllocation #FundOfFunds #Finance #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo