YouSaid · the spoken record

Scott Malpass

lines on the record: 120
first: 2018-07-16
most recent: 2018-07-16
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“On. And I went down there the next day. And that's how it started. Now we're, you know, one of the largest investors with Sequoia in the country, and it's been a fabulous friendship and partnership. But that's literally how it started. And I didn't know anything about Silicon Valley and what was going on. And there was a lot of tech companies. But boy, did I get immersed in it the next few years? And it was a lot of fun to do as well. So, you know, just the opportunity to start meeting some really smart savvy people across all asset classes.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it's evolved a lot from the beginning because remember I was pretty young and I'll never forget just a quick story when I went out to meet with the Capitol Guardian Trust Company was one of our managers in 1988. And at that time we had a fairly plain vanilla portfolio so they did a lot of our U.S. equities. And as you know, they had a really good record back in the 70s and 80s and did a great job. But I was talking with Dick Barker, who was president of Capitol at the time. He was in the San Francisco office. He wanted to live up in the Bay Area. And I said, Dick, you know, I'm up here and I'm hearing about more venture capital activities of large endowment funds. And we had a couple of very small allocations to Boston-based managers at the time. I had actually not met yet because I was just new. But I said, I understand most of the core folks are out here. Is there anybody you think I should meet with? And he said, well, my gosh, we helped fund Don Valentine. And you got to meet Don. And he called.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's a balance for sure, Ted, and we talk about that. At our size, look, we're not going to have ten of those in our portfolio. And Chicago is a great market for us. We wouldn't probably do that anywhere else, or it would be very limited because it's so close to us. We can get in there an hour and 20 minutes and come in and out. It's fairly easy. So you have to pick your spots. It's a balance. And look, we've had opportunities to do other things we've passed on in that regard. You know, it was a unique asset. But I'll tell you, if I could find another one like that, I would do it. But it is always a balance. And we talk about how we allocate our time in that regard.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Better partnerships. We are so much savvier real estate investors than we were prior to that. No question, you know, dealing with property management and all the details of a building. And even now as we interview kind of restaurant operators for putting in a real nice high-end restaurant in the building, just doing that has been fascinating. And I try not to get too much time in those kind of details because I want to stay a little higher than that because there's so much going on. But I learn a lot from that myself. So I love sitting on those meetings with my team and being involved as much as I can.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“About ten years ago, and a member of our committee was aware that I was wanting to do some of that. Not a lot, but some Chicago in particular. It's great training for your real estate team to actually have a building, to work on budgets and deal with the property manager. It's great training. And he was aware that we wanted to do something. And being a real estate developer himself, he became aware of a property in Chicago, the old Santa Fe building, the railway exchange building, which we ended up buying in 06 and owned to this day. It's more than doubled in value. It's went from 70% occupied to 95. We're now have a whole new plan for the building. I don't think that would have happened had this person not known what we were doing and had interest in helping us find the right property to start that.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Philosophy weren't going to change that. It was a very difficult time, but we stayed with it. And, you know, we went a little over 7 billion pre-crisis to high fives, and now we're at 12. So by not panicking and staying the course, so having”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. So the number one example I can think of would be going through the global financial crisis where everybody's sort of rethinking everything, right? Liquidity, strategy, philosophy. Where do we go from here? We didn't know where the bottom was. And you're tested, right? And you're thinking, okay, how far down is this going to go before we do something different? We never wavered, of course. I mean, we believe in our program. And, you know, there was not one single voice that felt we should be doing anything differently than what we're doing. We stayed the course. We rebalanced as we could. That was difficult because of liquidity. So you're a little more cautious there. But we came out of that very well. I think we were the only endowment in the top 20 major endowment that did not cut endowment spending. We actually didn't cut. We had a flat year and then up again. So that was very unusual. So just that we were on the same page. We had a long-term approach.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, most of our committee members are also on other committees of the board, so they can be assigned to the investment committee. They can also be assigned to other committees. And typically they are, so they're on two or three committees. There's some rotation, but typically if we get someone with really good asset management or capital markets experience, we want to keep them on the investment committee. And we've had a tremendous group of trustees on our committee over the third years I've been here from all areas of the capital markets. Private equity, real estate, venture, very fortunate.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I compliment the chairs of our board for allowing that to happen because it's very unusual, and probably most people would say it's probably not the best governance practice, but actually it really has worked for us.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“The chair of the investment committee is the only chair that has not rotated. Typically a chair will rotate every four to six years, could be longer, but that would be more typical. Maybe eight years would be the outside. But the board chairs have decided that this kind of continuity has actually been very helpful. And we've been lucky. We've been very fortunate to have had great chairs of the investment committee. Bob Wilmouth and now Jay Jordan is a private equity legend. And Jay's been chair since 95. And that has been a huge luxury for me and my team. The dialogue, you know, we sort of know what we're saying to each other and we can tell by the tone kind of what we mean. There's continuity in the philosophy. Jay offers great advice and counsel. I know what he's thinking about things. He knows what I'm thinking. There's no trying to dance around issues. We're very direct because there's a friendship and there's a familiarity there, which I think creates just very efficient dialogue.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it's actually gone fine. I mean, you're right. You want some turnover over time. I absolutely agree with that. And not everybody wants to be in the same position for their entire career. And the culture is not to make them feel guilty or bad in some way because they want to do something else. We don't have that. I tell all my people, if you want to be a CIO, I'm 100% behind you. Let me know and I'll help you. And that's happened with a couple people and they've done really well and others it hasn't. The culture is not, boy, if you don't stay here, you're disloyal or you're a bad person. The culture is we'll help you do whatever you want to achieve in life. It just happens that most of them just want to be here.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Here and they want to be committed to Notre Dame. So yes, I have eight directors. Three of them were over 20 years. The rest are over ten, fifteen. Some are just younger. They're just at 10, but it's a very close-knit team shares a lot of the same values, sees the bigger picture and what their work accomplishes for students and faculty. I always talk about financial aid. I think when I think about what we've done for financial aid and growing those resources so students can afford another Meducation, and every day we see the tangible signs of that. We see them in the office and as interns, we see them walking around campus. And we know a lot of those young people can't be here if it weren't for our work. And that's very motivating. And I'm sure it's motivating my peers at other schools who do the same thing.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Thank you Keep in mind, Ted, we're a place where we've only had three presidents since 1952, the average tenure of a college president's four years, so we've had three since 1952, the legendary father Hesberg, who just passed away a couple years ago, Father Molloy and now Father Jenkins. We've only had two chairs of the investment committee since 1978. And I'm a CIO for 30 years. So it's a place that draws people in to the mission, and they stay and they really committed. So I've been able to assemble a great team that feels the same way. All of the core investment team are Notre Dame alumni. Honestly, I don't know if they'd want to do this anywhere else. I think they're doing this for Notre Dame. They might well work at a family office or something. They would not go work in another endowment. Unlike sort of the Yale model, which is tremendous in putting out CIOs all over the country, but it's a different philosophy than we have in that regard.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I can see how this would not be an easy place to leave. I mean, it is special. It is special. Thank you. One of the things that I'm really curious to talk to you about is your team and really the people involved. And across the board, if you talk about the people, there's your team on the staff. There's the investment committee. There's the investment committee chairs and managers. And there's just an unusual amount of duration across the board.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“And he just started delegating things to me and let me run with it, but he was always there for me to give me confidence and make sure we had the resources and the budget to do this right. We sort of had this tremendous alignment of what we wanted to do. And it just evolved. And I was able to build the operation over almost 30 years now. It was really just, really wanting to be back in Notre Dame and help with the endowment. And then Bob Wilmouth really helping me get this started. Just a couple of us with kind of a vision and just day to day just slugging it out. But I'm so glad I came back. I thought I'd come back for a couple years and then they go back to Wall Street. And here I am 30 years later.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Anything about venture capital or private equity or emerging markets. I was 23, 24 years old and was fashioned by all of that. Irving was the custodian for the Nerdy Endowment, so I knew the CIO at Notre Dame, Father Richard Zang, who I also knew from campus he had been the rector of the graduate dorm. And ultimately, he was starting to try to expand the office and hired me as his assistant in August of 1988. He decided to move on to another assignment in the order nine months later. Which obviously would probably never happen again. I'm not even sure how it happened. But Bob Wilmouth, who was chairman of our investment committee, one of the great men that I've ever met, great business mind, tremendous leader, motivator. He said, kiddo, we're going to do this together.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is because of the students and the energy, and in our case, the Catholic mission is certainly a big draw. But I'm a Dame graduate undergrad. I was actually a science major. Thought I wanted to be a doctor, so I started off pre-med. I love science. I think the patterns and frameworks and analytical aspect of that I was always attracted to. But as I got toward my senior year, I really wasn't sure I was going to do with that. And I ended up going to business school, fell in love with the markets, worked at the Irving Trust Company in New York City, which, as you know, was taken over by the Bank of New York many, many years ago. But a great place to learn. And they had this little investment consulting group that worked with their custodial clients on asset allocation and manager search. And I had this fabulous gentleman, Ralph Nisley, who was my boss, and he took me all over the country to meet with these pension funds and talk about ass allocation. I just found a very intellectually stimulating, very interesting.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, well, first of all, thanks for coming to Notre Dame, and I'm glad you got in and had a tour last night to see our beautiful campus. Yeah, first day classes, too. First day classes. A lot of energy out there. Very exciting. And it's part of the reason you come work at university.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Vanguard and TIFF, and previously served on the Investment Advisory Committee for Major League Baseball. In 2014, Scott became part of the founding group for Catholic Investment Services Inc., a nonprofit that offers top-tier investment solutions to catholic organizations nationally. Our conversation is a full-blown masterclass on endowment management, including the benefits of a long tenured team, asset allocation frameworks, passive management, preparing for dislocations, the state of venture capital, sourcing, monitoring, and exiting managers, incremental process improvements, professional and personal development, and education and alignment across constituencies. It's hard not to be in awe of Scott's combination of humility, experience, and success.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“My guest on today's show is Scott Malpass, the esteemed vice president and chief investment officer of Notre Dame, where he oversees the university's twelve billion dollars endowment. Scott earned his BA and MBA degrees at Notre Dame and returned to South Bend at the ripe age of 26 following a brief stint on Wall Street. His track record for almost thirty years as defined by both performance and impact place him indisputably in rare company at the very top of the field. Among his many accolades, Scott received institutional investors endowment manager of the year award, Rodney H. Adams Award, and CIO magazine's lifetime achievement award. He has taught students at Notre Dame since nineteen ninety five and among other directorships and advisory councils he serves on the boards of the Vatican Bank.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source