Detailed Summary of "How I Invest with David Weisburd" Episode E199: How Rahul Moodgal Raised $99 Billion by Playing the Long Game

Release Date: August 13, 2025

In Episode E199 of "How I Invest with David Weisburd," host David Weisburd engages in an insightful conversation with Rahul Moodgal, a seasoned institutional investor renowned for raising an impressive $99 billion through a strategic emphasis on long-term relationships and contrarian investment approaches. This summary delves into the key discussions, strategies, and philosophies Rahul shares throughout the episode.

1. Introduction and Milestone Achievement

David Weisburd opens the episode by welcoming Rahul Moodgal, highlighting the remarkable achievement of raising $99 billion—a figure just shy of the coveted $100 billion mark.

• David [00:00]: "Rahul, welcome to the How Invest podcast."
• David [00:06]: "You haven’t quite raised $100 billion. You raised 99 billion."

Rahul humbly acknowledges his accomplishment, emphasizing that there isn't a one-size-fits-all blueprint for such success.

• Rahul [00:23]: "I don’t know if it’s a blueprint, but it’s my way... there’s just lots of different ways."

2. A Pivot in Fundraising Strategy: The Bear Stearns Cap Intro Event

Rahul recounts a pivotal moment from 2006 at the Bear Stearns Cap Intro event, where his unconventional approach led to a significant shift in investor engagement.

• David [00:33]: "Tell me the story about how you raised money at the Bear Stearns Cap intro event in 2006."
• Rahul [00:41]: Describes the initial boring pitch that failed to garner interest.

Determined to change the narrative, Rahul adopts a contrarian approach in his second presentation by openly discussing the negatives of his fund.

• Rahul [02:53]: "I went into the second meeting and I started off by saying, these are the reasons that people don’t invest with us."

This strategy defied expectations, leading to increased investor engagement and ultimately securing investments from eight out of twelve attendees.

• Rahul [03:00]: "And at the end of the day that session I had big follow up and eight of those 12 people in that room actually ended up investing with us."

3. The Power of Transparency: Starting with Negatives

David probes deeper into why Rahul’s approach of beginning with negatives was so effective.

• David [03:00]: "Extremely stark differences at the same cap intro event. Double click on why you think starting with the negatives had such a powerful effect on the audience."

Rahul explains that transparency builds trust and aligns expectations, allowing investors to understand the genuine risks and strengths of the fund from the outset.

• Rahul [03:10]: "We’re concentrated. We had lockups, we had high fees... they can see ourselves talking and... this is who I am."

He emphasizes that investors appreciate honesty, which facilitates deeper and more meaningful relationships.

4. Building Deep, Long-Term Relationships with LPs

A significant portion of the conversation focuses on the importance of cultivating long-term relationships with Limited Partners (LPs) rather than engaging in transactional interactions.

• Rahul [06:59]: "It's not about executing, this is about am I going to be able to pick up the phone and call David in 20 years time?"

Rahul underscores that enduring relationships with investors are founded on mutual respect, transparency, and shared values, ensuring sustained partnerships beyond fluctuating market performances.

5. Selecting the Right LPs: Quality Over Size

Rahul discusses his selective approach to choosing LPs, prioritizing the quality and alignment of capital over the sheer size of investments.

• Rahul [08:22]: "I am really picky on the quality of capital that I work with because it’s about long-term relationships..."

He differentiates between asset owners and asset allocators, expressing a preference for engaging directly with asset owners who have a fiduciary responsibility, thereby reducing complexities and enhancing accountability.

6. Organizational Structure and LP Feedback

The conversation delves into how organizational structure and seeking feedback from LPs can strengthen fund management and align strategies.

• Rahul [12:33]: "I care about is that person who I sat in the room with in 2006 going to take my call."

He advocates for establishing an LP Advisory Committee (LPAC) to garner valuable insights and guidance, fostering an environment where LPs contribute to the fund’s strategic direction and organizational culture.

7. Balancing Long-Termism with Scalability

David raises a critical question about the scalability of Rahul’s long-term approach, especially concerning smaller check sizes.

• David [32:20]: "How do you reconcile this duration or this long termism with check size?"

Rahul shares anecdotes demonstrating that small initial investments can grow exponentially over time, reinforcing the value of nurturing all relationships irrespective of their immediate size.

• Rahul [32:34]: "Never underestimate the small investor... that 2 million went become 50 million again."

8. Embracing Mission-Driven Investing

A recurring theme is the significance of having a mission beyond mere financial gains. Rahul highlights how mission-driven objectives enhance investor motivation and drive impactful investing.

• David [35:38]: "You mentioned mission multiple times... but I think it is something that's highly underrated in asset management..."

Rahul elaborates on how aligning with mission-driven organizations not only fosters deeper connections but also contributes to meaningful societal impacts.

• Rahul [36:28]: "It’s a dream... To be able to work in finance but have an impact on the world at the same time."

9. Managing Parvis Asset Management: A Contrarian Approach

Rahul provides an overview of Parvis Asset Management, his European equity firm, detailing its concentrated and long-term investment strategies.

• Rahul [58:01]: "Parvis is a European equity house. We manage about 11 and a half billion euros."

He describes embracing contrarian investments, focusing on companies undergoing transitions or impacted by short-term news, and maintaining a concentrated portfolio to capitalize on intrinsic value.

• Rahul [60:13]: "We’re not buying stocks, we're investing in businesses and holding them for the long term."

10. Overcoming Market Challenges with a Long-Term View

The discussion touches on strategies to navigate volatile markets while maintaining liquidity and commitment to long-term investments.

• Rahul [61:38]: "We keep on turning the stones and doing the work and making sure that there’s nothing we’re missing."

He shares success stories, such as holding Unicredit for eight years, which resulted in substantial returns despite initial underperformance, highlighting the importance of patience and thorough analysis.

11. The Importance of Personal Interactions in an Increasingly Digital World

Rahul emphasizes the irreplaceable value of face-to-face interactions in building and maintaining meaningful relationships with LPs.

• Rahul [66:22]: "I’m always trying to be helpful... It’s about how can we work together for 20 years."

He contrasts this with the limitations of digital communications, advocating for personal meetings to foster deeper connections and trust.

• Rahul [66:59]: "You just can’t do that by just dropping people. Are you going to invest in this fund?"

12. Conclusion: The Importance of Relationships Over Transactions

In closing, both David and Rahul reiterate the paramount importance of cultivating authentic, long-lasting relationships over transient, transactional interactions.

• David [70:25]: "You don’t like to be called a salesperson... It’s been absolutely an honor to spend time with you."

• Rahul [70:35]: "I’m really humbled. Thank you."

Rahul’s philosophy centers on being genuinely helpful, transparent, and focused on mutual growth, which not only facilitates immediate investments but also lays the groundwork for enduring partnerships that can adapt and thrive over decades.

Key Takeaways

• Transparency Builds Trust: Starting investment pitches with honest discussions about potential negatives can engage investors more effectively than traditional positive-only pitches.

• Quality Relationships Over Size: Selecting LPs based on the quality of relationship and alignment of values ensures long-term partnerships, irrespective of initial investment size.

• Mission-Driven Investing Enhances Motivation: Aligning investment strategies with meaningful missions not only motivates investors but also contributes to significant societal impacts.

• Personal Interactions are Irreplaceable: In an increasingly digital world, face-to-face meetings remain crucial for building deep, trust-based relationships with investors.

• Long-Term Commitment Yields Exponential Growth: Patience and a long-term perspective can transform small initial investments into substantial sums through nurtured relationships and strategic investing.

This episode offers a masterclass in institutional investing, highlighting how Rahul Moodgal’s commitment to long-term relationships, transparency, and mission-driven strategies have culminated in extraordinary fundraising success. Listeners gain invaluable insights into the nuanced dynamics between General Partners (GPs) and Limited Partners (LPs), emphasizing that genuine, thoughtful interactions pave the way for sustainable investment growth and lasting partnerships.