Featured Allocator | Maddie Wuelfing Rich of Berkeley Endowment Management Company
EAA: What drew you to the LP space and how did your background shape your path here?
Maddie: I started my career in investment banking, followed by M&A for a tech company. These roles were an excellent way to build a foundational qualitative and qualitative skillset, as well as a network of some really great people! When I was thinking about the next chapter of my career, I was looking to take a broader view of the financial system and how capital flows throughout it, expand my own investing skillset and work for an organization whose mission I cared deeply about. As I learned about the role of an LP, I realized it was a perfect fit for all of these!
EAA: Tell us more about your organization. What’s its origin story and core mission?
Maddie: Berkeley Endowment Management Company (BEMCO) manages the investment of endowment funds to support UC Berkeley. BEMCO was established in 2009 with the primary objective of generating returns sufficient to meet the desired financial support to UC Berkeley’s mission of teaching, research and public service. Today, we manage about $3.1 billion.
EAA: How should GPs and fellow LPs understand your firm's investment philosophy?
Maddie: BEMCO’s primary goal is supporting UC Berkeley by preserving and growing the endowment over the long term. We do this by investing in managers across asset classes, strategies, and geographies who help us achieve our portfolio’s goals. Not only do we want to maximize long-term returns, but we also want to maintain real purchasing power and sufficient liquidity. BEMCO prioritizes partnering with managers who have unique edge in their strategy and are strongly aligned with our own objectives. A critical part of our investment philosophy is finding the right balance among all these things!
EAA: What’s been a defining moment in your allocator journey so far?
Maddie: Since I joined Berkeley over a year ago, there have been many moments! One of my favorites was BEMCO’s annual event at the beginning of the year (aptly named Cheers to the New Years!) that we host for other emerging allocators. Amidst fun drinks and snacks we discuss our institution’s accomplishments in the prior year, and areas of interest or focus for the coming year. It’s such an awesome way to celebrate the achievements of other allocators and connect with peers who are prioritizing similar goals. Definitely a highlight of the year for me!
EAA: What’s a current idea, market shift, or emerging thesis that’s on your radar?
Maddie: Right now, it’s hard not to think about the impact that AI will have on all parts of our portfolios. It comes up in every conversation we have – no matter the asset class. I’m spending a lot of time thinking about the areas of the investment landscape that are evolving significantly – such as the innovation coming out of venture capital or data centers and compute power. I’m most interested in the downstream effects of AI and how it will fundamentally change asset classes, how we invest and how we all work. There are still many unknowns but it’ll be exciting to see how it all unfolds in the coming years.
EAA: What makes a great manager meeting stand out?
Maddie: There’s no shortage of smart, capable GPs out there! As LPs, we get to meet so many great managers and I come away from every meeting having learned something new. However, some of the most memorable meetings are ones where: 1) GPs are building strong organizations around them. A key ingredient to strong performance is the people who make it happen, and seeing a GP who has a vision for their organization and is doing the work to build it is really differentiating, 2) GPs are aligned with LP objectives. It is clear when a GP understands what the LPs goals are (whether it be governance or liquidity needs or strategic areas of focus). It sets up a great partnership!
EAA: Who have been some of your most important mentors, and what did you learn from them?
Maddie: I have been so lucky to be surrounded by many great mentors throughout my life! My first mentors were my family members, who continue to be great sounding boards for me throughout each step of life. I’ve also had the pleasure of working for some really incredible leaders throughout my career. A common thread that I’ve noticed from each one of them is that bringing a good attitude, willingness to work hard, and a little bit of creativity goes a long way. One of my mentors gave a piece of advice that has always stuck with me: make sure you know how to define success. If you can’t do that, it may be time to rethink what you are doing or pursue another route. I have kept that in mind as I’ve thought about investments, starting new projects and in my career overall!
EAA: What are you most excited about for the next 10 years?
Maddie: Professionally, I’m looking forward to continuing to gain experience as an LP! There are so many facets to the LP role, so being able to come to work every day with the opportunity to learn something new is definitely something I’m excited about. I see the next 10 years full of investing in exceptional firms and meeting incredibly smart GPs and LPs. Personally, I am looking forward to a lot of good times with family and friends, travel and hopefully getting myself to a respectable handicap!