20VC: How LPs Allocate to Venture in 2026: What They Want, What They Do Not Want | Why Fund Multiple Does Not Matter Without a Timeline | Why Velocity of Cashback is the Most Important Thing with David Morehead, CIO @ Baylor

Endowment investment management requires prioritizing the velocity of capital over mere returns to ensure sufficient distributions for higher education funding. Baylor University’s CIO David Morehead emphasizes that long-duration funds often fail to align with the compounding math necessary for institutional growth, advocating instead for direct engagement with general partners to optimize risk-return profiles. Portfolio construction relies on a disciplined 45% private allocation, with a focus on venture capital, growth equity, and buyouts. Rather than passive participation, the office employs a mechanistic approach to market downdrafts, systematically increasing exposure to high-quality assets like software during periods of irrational selling. This strategy, combined with a unique team-building model that prioritizes long-term stability through undergraduate recruitment, allows the endowment to navigate demographic shifts in higher education while maintaining a competitive, value-centric investment book.