Featured Allocator | David Chiodo of Performance Equity Management
EAA: What drew you to the LP space and how did your background shape your path here?
David: My path was catalyzed during my time in strategy consulting, where I was involved in diligence and strategy projects for private equity sponsors. While I enjoyed that work, I was drawn to the allocator side by a unique opportunity at Performance Equity. The role promised a broader mandate across venture and buyout primaries, secondaries, and co-investments, which was an ideal fit for my natural curiosity. It provides the perfect blend of intellectual breadth and the ability to go deep on specific themes. It's exciting to have connectivity with some of the most important innovation and tech trends early in their journeys.
EAA: Tell us more about your organization. What’s its origin story and core mission?
David: Performance Equity Management (PEM) was formally established in 2005, but our core team has a shared history spanning over 20 years, initially at GMIMCo managing the GM Pension's private equity portfolio. Our mission is clear: to provide global institutional clients with premier access to private equity through partnerships, secondaries, and co-investments. To date, we've committed approximately $30 billion to over 175 sponsors worldwide.
EAA: How should GPs and fellow LPs understand your firm's investment philosophy?
David: Our firm's investment philosophy is straightforward: a singular focus on private equity, aiming for superior, risk-adjusted returns through robust sourcing, disciplined screening, and deep due diligence. I find this resonates strongly with my own view that outperformance in this asset class is intrinsically linked to the quality and longevity of relationships.
EAA: What’s been a defining moment in your allocator journey so far?
David: A key defining moment has been contributing to the build-out of our emerging VC program. Playing a part in establishing this strategy, including sourcing and diligencing our initial commitments, has been a deeply rewarding experience.
EAA: What’s a current idea, market shift, or emerging thesis that’s on your radar?
David: One area very much on my radar is the evolution of the venture model itself. I’m intrigued by the rise of active operator-led funds, and I’m seeing a new wave of VCs who add value by zeroing in on tangible needs such as distribution support, deep design expertise, customer-success playbooks, go-to-market frameworks, or AI-infrastructure resources. It feels like a natural progression, especially as “next-gen” firms emerge to back young AI founders.
Geographically, I’m drawn to up-and-coming regions like India and Latin America, where talent density and exit pathways are maturing fast.
These all complement enduring interests in critical sectors, ranging from foundational technologies like developer tools and computing infrastructure to applied domains such as cybersecurity, robotics, hardtech, and the expanding universe of vertical AI.
Taken together, these signals suggest a broader shift: venture is becoming more operational, more global, and more precisely tuned to the needs of deeply technical founders.
EAA: What is your most non-consensus controversial take?
David: Something I’ve been wrestling with is the traditional LP emphasis on high ownership targets. I believe the more crucial metric is a manager's ability to win access to 'power law' companies and dedicate a significant 'share of fund' to them, regardless of the initial stake. This thinking leads to backing more concentrated funds, a strategy I’m comfortable with, since LPs can diversify that risk at the portfolio level. To me, the greater danger is adverse selection from managers passing on phenomenal opportunities because their very competitiveness precludes hitting a rigid ownership target. That error of omission is perhaps the most significant barrier to outperformance.
EAA: What makes a great manager meeting stand out?
David: A truly great manager meeting is one where you walk away with an undeniable conviction – that feeling of 'we absolutely need to partner with them.' It’s a surprisingly high bar, and when a manager instills that level of confidence and excitement, it’s truly memorable.
EAA: What do you like to do outside of work?
David: Outside of work, I love to soak up the best of New York! I'm at the Met Opera frequently. I also very much enjoy Citi Biking around to explore different neighborhoods, indulging in the city's amazing food scene, and catching live music.