The biggest risk as an allocator is not taking risks . While one’s downside is capped by diversification across funds, vintages, and domains—the biggest risk is not to swing big enough and to cap one’s upside as well, and to stack a bunch of 3x funds, charge fees on top, and sell 2.5x back to one’s investors.

In an industry of outliers, many allocators have ignored outliers for a long time and preferred funds that are sustainable, process-driven , big enough to scale relationships, often to settle with 3x returns over 12 years with no clear path to liquidity.