Podcast Summary: How I Invest with David Weisburd

Episode 209: "$70B AUM: How Cresset Delivers Alpha at Scale"

Guest: Avi (Co-founder, Cresset)
Date: September 5, 2025
Host: David Weisburd

Overview

This episode features an in-depth conversation between David Weisburd and Avi, co-founder of Cresset, exploring Avi's circuitous journey from law to private equity, building Cresset into a $70B+ asset manager, and strategies for delivering alpha at scale. Topics span private equity's evolution, co-investment dynamics, the importance of culture in both investment and business, the growing role of private credit, and actionable advice for rising professionals.

Key Discussion Points and Insights

Avi's Path Into Private Equity (00:06 – 02:45)

Avi began as a lawyer and CPA at Kirkland & Ellis, moving into deal-making under mentorship before running operations at Cook International across diverse sectors.
His interest evolved toward being the principal in deals rather than an adviser.
Notable career move: Ran private equity for Continental Bank, which spun out after Bank of America acquisition, leading to the Willistein funds.

"I liked the side of the doer of the deals versus the person supporting the doer of the deals... One of my clients made me an offer I couldn't refuse." — Avi (00:28)

Private Equity Then Versus Now (02:45 – 03:58)

Past: Entrepreneurial, scrappier, smaller funds, little sector focus or reliance on consultants.
Present: Institutionalized, process-heavy (consultants, big investment committees), mega-funds now dominate.

"In those days it was a much more entrepreneurial business and there weren't that many funds above $5 billion... today it's a far more institutional business." — Avi (03:01)

The Multi-Strategy Model and Regrets (03:58 – 05:32)

Carlisle revolutionized the franchise/multi-strategy approach, now industry norm among mega-players.
Avi regrets not launching a credit vehicle after 9/11, missing out on the multi-strategy trend that now commands most fundraising.

"59% of all the capital raised last year was raised by six groups like that.... one of my great regrets that I didn't follow through." — Avi (04:46)

Business of Distribution and Capital Raising (05:32 – 07:41)

Distribution (attracting investors) has become hugely expensive.
Multifamily office and RIA channels are underpenetrated and rival institutional pools in size—$20 trillion between wirehouses and RIAs.

"Distribution is incredibly expensive... it’s a lot better if you have sector specific funds, credit funds, other types of vehicles." — Avi (05:48)

Trade-offs: Mega-Funds vs. Niche Managers (07:41 – 11:26)

Cresset allocates ~$100 billion (including AUA), rivaling sovereign funds and endowments.
While smaller, sector-specific funds generally outperform, Cresset sees value in strategic access and differentiated opportunities with mega-funds (e.g., co-invests/GP economics).
Notable story: Making extraordinary effort for a Middle Eastern sovereign wealth fund to land a $100M commitment (09:30).

"In general... earlier funds are better than later funds, sector specific funds perform better than generalist funds, smaller in general better than larger." — Avi (08:45)

Co-Investment Terms, Access, and Alpha (11:26 – 15:00)

Co-investment rights vary greatly by asset class and GP.
In VC, it’s about access (not always about economics). Larger private equity: opportunities for seeding new vehicles and limited GP economics.
Fee breaks more common in real estate and credit, less so in mainstream PE.

"Sometimes you get co-invest for free in venture capital and sometimes you're still paying 1 in 10... that’s all over the place." — Avi (12:00)

Co-invests can deliver substantial incremental IRR: up to 600bps per Professor Steve Kaplan—critical to avoid adverse selection (13:13-13:50).

"The adverse selection thing is really an important point... We hope to avoid that...with our huge investment staff." — Avi (13:50)

Seeding New Strategies (15:00 – 16:30)

Recent opportunities: seeding perpetual GP stakes vehicles with in-built liquidity.
Preference for first-time funds from known, cohesive teams over loose collectives.

"We’re okay seeding a fund... for a team that's spun out and has a track record as a team, as long as it's the team." — Avi (16:30)

Delivering Alpha at $100 Billion: Operationalization (17:06 – 19:29)

The growing market for private investments by non-institutional investors ($12T by 2030).
For small allocations, pooled vehicles are necessary; for large, direct deals/co-invests still viable.

Incentive Alignment in Co-Invests (19:29 – 21:54)

Cresset does not charge clients for co-investment vehicles, ensuring full alignment.
GPs require co-investment to attract large allocators, but may use it to do larger deals than fund size rationalizes. Proper diligence is critical.
Relationship-building with GPs is a core Swensen-like strength.

"What we try to do is to be great partners to [GPs] from the beginning..." — Avi (21:29)

Relationship Capital and Recurring Games (21:54 – 24:43)

Long-term, trusted relationships with GPs facilitate unique access and early conversations about new strategies.
Culture, trust, and consistency are key; repeated positive interaction builds a cadence that creates access advantages.

"Businesses, people, and this is no different... consistency in approach builds trust." — Avi (23:32)

Selecting Private Equity Partners & the Primacy of Culture (25:54 – 28:26)

Criteria have evolved: From "industry dynamics, competitive positioning, and people" to "people, culture...those are everything."
Mistakes often trace back to misplaced trust or culture fit.

"If you do a postmortem... it's usually something that was, in hindsight, painfully obvious...someone in the daisy chain you should not have trusted." — Avi (27:10)

Building Cresset’s Internal Culture (28:26 – 30:20)

Cresset started with an offsite to codify its culture; maintain a "culture card" reviewed regularly.
Key tenets: built by clients, for clients, maintaining a boutique feel at scale, extreme accountability, and optimistic energy.

Hiring for Culture (30:20 – 33:08)

For senior hires, recommends thorough personality and behavioral assessments (e.g., GH Smart).
Lower levels: personality indices and scenario-based questions to uncover true responses.
Consistency in interview questions yields comparative data.

"At the very top levels I really do think you need an industrial psychologist review." — Avi (31:32)

Lower Middle Market Private Credit Opportunity (33:15 – 39:37)

Shift from bank lending to private credit; sponsor credit dominates lower middle market.
Senior debt yields of 11–11.5% now common, with four-times leverage typical in lower middle market.
Private lenders have more influence; private credit isn’t as vulnerable to a blow-up as feared—GPs have "skin in the game" and will often recapitalize to avoid a total loss.

"The private lenders...are providing a lot more liquidity in the market... sponsor credit with solid sponsors, it's not a highly risky proposition because you've got a dollar of equity behind the dollar of debt." — Avi (36:55)

Tax-Efficient Credit Exposure for (Mostly) Taxable Investors (39:37 – 40:51)

IRAs and qualified accounts are straightforward.
For larger, taxable accounts: Insurance Dedicated Funds (private placement life insurance/annuities) can provide efficient shelter, though with complexity and >100bps cost.

Reflections and Career Advice (41:13 – 48:26)

Advice to young professionals: Excel at your piece of the puzzle, but always zoom out to learn how it fits into the big picture.
Be present in work and life; balance is key.
Greatest career moves: Starting as a lawyer, becoming an operator, working under innovators, and ultimately building Cresset to solve real needs for clients.

"Make sure that you understand how everything works and... never stop learning." — Avi (42:00)

"I always pinch myself that...Eric Becker and I...realized there was enormous opportunity to build something that not only optimizes wealth but also optimizes lives. That's my crowning achievement." — Avi (47:15)

Starting a Business: Solve Real Needs (48:26 – 49:52)

Cresset was founded to solve Avi's own pain point; urges entrepreneurs to build out of experienced need, not just a desire to start something.

"Start something that you know, start something that you've seen, start something you know there's a need." — Avi (49:05)

Notable Quotes & Memorable Moments

On Access and Alpha:
"Sometimes you get co-invest for free in venture capital and sometimes you're still paying 1 in 10... that's all over the place." — Avi (12:00)
On Relationships:
"Businesses, people, and this is no different. While it can become very transactional... it should always have that element of relationship and culture." — Avi (23:32)
On Missed Opportunities:
"One of my great regrets was...we were going to launch a credit vehicle and 9/11 happened and we lost our nerve..." — Avi (04:25)
On Culture:
"We went offsite... spent three days talking about what our culture needed to be... memorialized in a one-page culture card which exists today." — Avi (28:41)
On Career:
"You have a perch, and from that perch you can see a lot of things. Make sure you take it in..." — Avi (41:40)

Timestamps for Key Segments

Avi's private equity origin story: 00:06 – 02:45
Evolution of private equity: 02:45 – 03:58
Perspective on multi-strategy funds: 03:58 – 05:32
Distribution & capital pools: 05:32 – 07:41
Mega-fund vs. niche manager tradeoffs: 07:41 – 11:26
Co-investment mechanics: 11:26 – 15:00
Seeding opportunities: 15:00 – 16:30
Alpha at scale: 17:06 – 19:29
Aligning incentives in co-invests: 19:29 – 21:54
Relationship building: 21:54 – 24:43
Manager selection & importance of people: 25:54 – 28:26
Building internal culture: 28:26 – 30:20
Hiring for culture: 30:20 – 33:08
Lower middle market credit: 33:15 – 39:37
Tax management for investors: 39:37 – 40:51
Advice for young professionals: 41:13 – 48:26
Entrepreneurship principles: 48:26 – 49:52

Conclusion

This episode offers a rare inside look at how one of the largest multifamily office RIAs approaches private markets—balancing access, scale, culture, and client alignment to deliver alpha. Avi’s personal journey, focus on relationships, and philosophy of continual learning provide a blueprint for both institutional allocators and ambitious financial professionals.

Podcast Summary: How I Invest with David Weisburd

Episode 209: "$70B AUM: How Cresset Delivers Alpha at Scale"

Guest: Avi (Co-founder, Cresset)
Date: September 5, 2025
Host: David Weisburd

Overview

Key Discussion Points and Insights

Avi's Path Into Private Equity (00:06 – 02:45)

Avi began as a lawyer and CPA at Kirkland & Ellis, moving into deal-making under mentorship before running operations at Cook International across diverse sectors.
His interest evolved toward being the principal in deals rather than an adviser.
Notable career move: Ran private equity for Continental Bank, which spun out after Bank of America acquisition, leading to the Willistein funds.

"I liked the side of the doer of the deals versus the person supporting the doer of the deals... One of my clients made me an offer I couldn't refuse." — Avi (00:28)

Private Equity Then Versus Now (02:45 – 03:58)

Past: Entrepreneurial, scrappier, smaller funds, little sector focus or reliance on consultants.
Present: Institutionalized, process-heavy (consultants, big investment committees), mega-funds now dominate.

"In those days it was a much more entrepreneurial business and there weren't that many funds above $5 billion... today it's a far more institutional business." — Avi (03:01)

The Multi-Strategy Model and Regrets (03:58 – 05:32)

Carlisle revolutionized the franchise/multi-strategy approach, now industry norm among mega-players.
Avi regrets not launching a credit vehicle after 9/11, missing out on the multi-strategy trend that now commands most fundraising.

"59% of all the capital raised last year was raised by six groups like that.... one of my great regrets that I didn't follow through." — Avi (04:46)

Business of Distribution and Capital Raising (05:32 – 07:41)

Distribution (attracting investors) has become hugely expensive.
Multifamily office and RIA channels are underpenetrated and rival institutional pools in size—$20 trillion between wirehouses and RIAs.

"Distribution is incredibly expensive... it’s a lot better if you have sector specific funds, credit funds, other types of vehicles." — Avi (05:48)

Trade-offs: Mega-Funds vs. Niche Managers (07:41 – 11:26)

Cresset allocates ~$100 billion (including AUA), rivaling sovereign funds and endowments.
While smaller, sector-specific funds generally outperform, Cresset sees value in strategic access and differentiated opportunities with mega-funds (e.g., co-invests/GP economics).
Notable story: Making extraordinary effort for a Middle Eastern sovereign wealth fund to land a $100M commitment (09:30).

"In general... earlier funds are better than later funds, sector specific funds perform better than generalist funds, smaller in general better than larger." — Avi (08:45)

Co-Investment Terms, Access, and Alpha (11:26 – 15:00)

Co-investment rights vary greatly by asset class and GP.
In VC, it’s about access (not always about economics). Larger private equity: opportunities for seeding new vehicles and limited GP economics.
Fee breaks more common in real estate and credit, less so in mainstream PE.

"Sometimes you get co-invest for free in venture capital and sometimes you're still paying 1 in 10... that’s all over the place." — Avi (12:00)

Co-invests can deliver substantial incremental IRR: up to 600bps per Professor Steve Kaplan—critical to avoid adverse selection (13:13-13:50).

"The adverse selection thing is really an important point... We hope to avoid that...with our huge investment staff." — Avi (13:50)

Seeding New Strategies (15:00 – 16:30)

Recent opportunities: seeding perpetual GP stakes vehicles with in-built liquidity.
Preference for first-time funds from known, cohesive teams over loose collectives.

"We’re okay seeding a fund... for a team that's spun out and has a track record as a team, as long as it's the team." — Avi (16:30)

Delivering Alpha at $100 Billion: Operationalization (17:06 – 19:29)

The growing market for private investments by non-institutional investors ($12T by 2030).
For small allocations, pooled vehicles are necessary; for large, direct deals/co-invests still viable.

Incentive Alignment in Co-Invests (19:29 – 21:54)

Cresset does not charge clients for co-investment vehicles, ensuring full alignment.
GPs require co-investment to attract large allocators, but may use it to do larger deals than fund size rationalizes. Proper diligence is critical.
Relationship-building with GPs is a core Swensen-like strength.

"What we try to do is to be great partners to [GPs] from the beginning..." — Avi (21:29)

Relationship Capital and Recurring Games (21:54 – 24:43)

Long-term, trusted relationships with GPs facilitate unique access and early conversations about new strategies.
Culture, trust, and consistency are key; repeated positive interaction builds a cadence that creates access advantages.

"Businesses, people, and this is no different... consistency in approach builds trust." — Avi (23:32)

Selecting Private Equity Partners & the Primacy of Culture (25:54 – 28:26)

Criteria have evolved: From "industry dynamics, competitive positioning, and people" to "people, culture...those are everything."
Mistakes often trace back to misplaced trust or culture fit.

"If you do a postmortem... it's usually something that was, in hindsight, painfully obvious...someone in the daisy chain you should not have trusted." — Avi (27:10)

Building Cresset’s Internal Culture (28:26 – 30:20)

Cresset started with an offsite to codify its culture; maintain a "culture card" reviewed regularly.
Key tenets: built by clients, for clients, maintaining a boutique feel at scale, extreme accountability, and optimistic energy.

Hiring for Culture (30:20 – 33:08)

For senior hires, recommends thorough personality and behavioral assessments (e.g., GH Smart).
Lower levels: personality indices and scenario-based questions to uncover true responses.
Consistency in interview questions yields comparative data.

"At the very top levels I really do think you need an industrial psychologist review." — Avi (31:32)

Lower Middle Market Private Credit Opportunity (33:15 – 39:37)

Shift from bank lending to private credit; sponsor credit dominates lower middle market.
Senior debt yields of 11–11.5% now common, with four-times leverage typical in lower middle market.
Private lenders have more influence; private credit isn’t as vulnerable to a blow-up as feared—GPs have "skin in the game" and will often recapitalize to avoid a total loss.

"The private lenders...are providing a lot more liquidity in the market... sponsor credit with solid sponsors, it's not a highly risky proposition because you've got a dollar of equity behind the dollar of debt." — Avi (36:55)

Tax-Efficient Credit Exposure for (Mostly) Taxable Investors (39:37 – 40:51)

IRAs and qualified accounts are straightforward.
For larger, taxable accounts: Insurance Dedicated Funds (private placement life insurance/annuities) can provide efficient shelter, though with complexity and >100bps cost.

Reflections and Career Advice (41:13 – 48:26)

Advice to young professionals: Excel at your piece of the puzzle, but always zoom out to learn how it fits into the big picture.
Be present in work and life; balance is key.
Greatest career moves: Starting as a lawyer, becoming an operator, working under innovators, and ultimately building Cresset to solve real needs for clients.

"Make sure that you understand how everything works and... never stop learning." — Avi (42:00)

"I always pinch myself that...Eric Becker and I...realized there was enormous opportunity to build something that not only optimizes wealth but also optimizes lives. That's my crowning achievement." — Avi (47:15)

Starting a Business: Solve Real Needs (48:26 – 49:52)

Cresset was founded to solve Avi's own pain point; urges entrepreneurs to build out of experienced need, not just a desire to start something.

"Start something that you know, start something that you've seen, start something you know there's a need." — Avi (49:05)

Notable Quotes & Memorable Moments

On Access and Alpha:
"Sometimes you get co-invest for free in venture capital and sometimes you're still paying 1 in 10... that's all over the place." — Avi (12:00)
On Relationships:
"Businesses, people, and this is no different. While it can become very transactional... it should always have that element of relationship and culture." — Avi (23:32)
On Missed Opportunities:
"One of my great regrets was...we were going to launch a credit vehicle and 9/11 happened and we lost our nerve..." — Avi (04:25)
On Culture:
"We went offsite... spent three days talking about what our culture needed to be... memorialized in a one-page culture card which exists today." — Avi (28:41)
On Career:
"You have a perch, and from that perch you can see a lot of things. Make sure you take it in..." — Avi (41:40)

Timestamps for Key Segments

Avi's private equity origin story: 00:06 – 02:45
Evolution of private equity: 02:45 – 03:58
Perspective on multi-strategy funds: 03:58 – 05:32
Distribution & capital pools: 05:32 – 07:41
Mega-fund vs. niche manager tradeoffs: 07:41 – 11:26
Co-investment mechanics: 11:26 – 15:00
Seeding opportunities: 15:00 – 16:30
Alpha at scale: 17:06 – 19:29
Aligning incentives in co-invests: 19:29 – 21:54
Relationship building: 21:54 – 24:43
Manager selection & importance of people: 25:54 – 28:26
Building internal culture: 28:26 – 30:20
Hiring for culture: 30:20 – 33:08
Lower middle market credit: 33:15 – 39:37
Tax management for investors: 39:37 – 40:51
Advice for young professionals: 41:13 – 48:26
Entrepreneurship principles: 48:26 – 49:52

E209: $70B AUM: How Cresset Delivers Alpha at Scale

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Summary

Podcast Summary: How I Invest with David Weisburd

Episode 209: "$70B AUM: How Cresset Delivers Alpha at Scale"

Overview

Key Discussion Points and Insights

Avi's Path Into Private Equity (00:06 – 02:45)

Private Equity Then Versus Now (02:45 – 03:58)

The Multi-Strategy Model and Regrets (03:58 – 05:32)

Business of Distribution and Capital Raising (05:32 – 07:41)

Trade-offs: Mega-Funds vs. Niche Managers (07:41 – 11:26)

Co-Investment Terms, Access, and Alpha (11:26 – 15:00)

Seeding New Strategies (15:00 – 16:30)

Delivering Alpha at $100 Billion: Operationalization (17:06 – 19:29)

Incentive Alignment in Co-Invests (19:29 – 21:54)

Relationship Capital and Recurring Games (21:54 – 24:43)

Selecting Private Equity Partners & the Primacy of Culture (25:54 – 28:26)

Building Cresset’s Internal Culture (28:26 – 30:20)

Hiring for Culture (30:20 – 33:08)

Lower Middle Market Private Credit Opportunity (33:15 – 39:37)

Tax-Efficient Credit Exposure for (Mostly) Taxable Investors (39:37 – 40:51)

Reflections and Career Advice (41:13 – 48:26)

Starting a Business: Solve Real Needs (48:26 – 49:52)

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Conclusion

Summary

Podcast Summary: How I Invest with David Weisburd

Episode 209: "$70B AUM: How Cresset Delivers Alpha at Scale"

Overview

Key Discussion Points and Insights

Avi's Path Into Private Equity (00:06 – 02:45)

Private Equity Then Versus Now (02:45 – 03:58)

The Multi-Strategy Model and Regrets (03:58 – 05:32)

Business of Distribution and Capital Raising (05:32 – 07:41)

Trade-offs: Mega-Funds vs. Niche Managers (07:41 – 11:26)

Co-Investment Terms, Access, and Alpha (11:26 – 15:00)

Seeding New Strategies (15:00 – 16:30)

Delivering Alpha at $100 Billion: Operationalization (17:06 – 19:29)

Incentive Alignment in Co-Invests (19:29 – 21:54)

Relationship Capital and Recurring Games (21:54 – 24:43)

Selecting Private Equity Partners & the Primacy of Culture (25:54 – 28:26)

Building Cresset’s Internal Culture (28:26 – 30:20)

Hiring for Culture (30:20 – 33:08)

Lower Middle Market Private Credit Opportunity (33:15 – 39:37)

Tax-Efficient Credit Exposure for (Mostly) Taxable Investors (39:37 – 40:51)

Reflections and Career Advice (41:13 – 48:26)

Starting a Business: Solve Real Needs (48:26 – 49:52)

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Conclusion