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Mark Machin, CEO of Opto, former head of CPPIB (one of the world's largest pensions) and partner of Goldman Sachs, explains why he pushed CPPIB into a venture allocation.
Investors were wary after the dot com bubble of including venture in their portfolios because risk-adjusted returns weren't great and the space was still relatively new and small.
That changed and today risk-adjusted returns for venture are very attractive, and the space has grown a lot - leading investors to make bigger allocations.
Importantly, portfolios are exposed to the risks that disruption can bring if they're not holding venture capital allocations.
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