E179: How UCLA's Endowment Wins in Private Equity w/Deputy CIO Michael Marvelli

Michael Marvelli leads the private markets strategy at the UCLA Investment Company, managing a portfolio that spans private equity, real estate, and real assets. But his route to institutional investing wasn’t linear. Before UCLA, he spent time at Prudential and The Irvine Company in real estate and mortgage finance, and even helped launch a venture-backed startup as COO and CFO. That operating experience gives him a unique lens when evaluating managers today. In this episode, we talk about how UCLA builds conviction in lower-middle-market GPs, how they manage dry powder and fund pacing, and what it was like spinning out UCLA’s investment office into an independent entity. Highlights: The origins of the UCLA Investment Company What it took to build the team, processes, and governance from scratch Why UCLA is drawn to undercapitalized and underfollowed private equity managers How real estate and real assets fit into a long-term endowment portfolio The importance of downside protection and flexible pacing in private markets How being a startup COO informs his view on GP talent, decision-making, and alignment What he looks for in truly “great” allocators and investors -- Guest Bio: Michael Marvelli is the Deputy Chief Investment Officer of the UCLA Investment Company, where he leads the firm’s private markets strategy, overseeing private equity, real estate, real assets, and credit. He joined UCLA in 2003 and played a key role in the 2011 launch of the UCLA Investment Company. Before joining UCLA, Michael worked in real estate and mortgage finance at Prudential and The Irvine Company, and co-founded a venture-backed startup where he served as COO and CFO. He holds a BS from UC Berkeley’s Haas School of Business and an MBA from Northwestern’s Kellogg School of Management. Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com . #VentureCapital #VC #Startups #OpenLP #assetmanagement -- Stay Connected: X / Twitter: David Weisburd: @dweisburd LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Michael Marvelli: https://www.linkedin.com/in/michael-marvelli-9918557/ Links: UCLA Investment Company: http://www.uclainvestmentcompany.org/home -- Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com . (0:00) Episode preview (1:46) Evolution of UCLA Investment Company's strategy (2:29) Asset allocation and its impact on returns (4:11) Manager selection vs. asset allocation strategy (7:30) Exploring the lower middle market in private equity (15:54) Challenges for endowments investing in the lower middle market (20:55) Specialization and focus in endowment investment strategies (25:50) Independent sponsor deals and search funds insights (29:59) Portfolio construction and commitment strategies (32:54) Investment deployment in the lower middle market (34:37) Value creation strategies in lower middle market investments (38:45) The influence of interest rates on private equity (40:56) Defining the ideal GP in private equity (44:03) The importance of sector specialization and operating executives (50:12) Founder-operator rapport in the lower middle market (54:54) Career advice for aspiring private equity professionals (58:34) Emphasizing first principles in investment strategy (1:02:48) Michael Marvelli's strategic thinking and personal strengths (1:04:30) Closing remarks