E223: The Art of Capital Allocation at $86 Billion Scale
Manage episode 512332787 series 3670460
Highlights:
- Future Standard under the FS + Portfolio Advisors merger with ~$86B AUM
- How wealth clients access institutional alternatives via structured vehicles
- Mid-market outperformance vs. large-cap PE
- Operating depth and specialization as scale drivers
- Evergreen strategies reducing cash drag
- Anchor LPs as credibility signals
- Partnership transparency as LP/GP discipline
- Co-invest, secondaries & credit augmenting optionality
- Patience, credibility & compounding relationships
Guest Bio:
Payton Brooks is a Managing Director on Future Standard’s Primary Investments team, focusing on manager selection and portfolio construction across the private-equity landscape. He joined the firm in 2014, and holds a B.A. from Southern Virginia University and an MBA from the Yale School of Management. Future Standard is a global alternatives platform investing across private equity, credit, and real estate, serving both institutional and private-wealth clients; the firm rebranded from FS Investments in July 2025 following its combination with Portfolio Advisors in June 2023.
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Links Future Standards: https://www.futurestandard.com/
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(0:00) Introduction (0:44) Client base and portfolio construction (1:40) Differences between high net worth individuals and pension funds (3:02) Access for high net worth investors to asset classes (4:05) Characteristics of successful private equity funds and large cap buyouts (9:21) Evaluating middle market managers and building relationships (16:40) Utilizing secondaries, co-investments, and internal team structure (19:01) Traits of elite superstar GPs and repeatable value creation (23:22) Decision-making process and portfolio construction within the buyout fund (28:39) Pension fund investment in Evergreen Fund mechanics and benefits (34:14) Evergreen Fund strategy, market impact, and comparison to drawdown funds (41:32) Challenges and strategies for emerging managers (44:02) Securing anchor investors and LP decision-making (47:58) Importance of time optionality in fund investments (51:08) Balancing early and late fund investments (53:20) Career reflections and advice to younger self (55:23) Enhancing investment knowledge and leveraging partners for insights (57:06) Closing remarks227 episodes