Private Detective to Private Investments: Life Lessons from Caprock’s Chris Schelling

This week on Swimming with Allocators, Earnest and Alexa welcome Chris Schelling, Director of Private Investments at Caprock. During the episode, the group explores venture capital, private markets, and the role of behavioral finance in investment decision-making. Chris, who has allocated around $7 billion across various asset classes, shares his affinity for venture capital due to its role in driving innovation and creative disruption. He also addresses the challenges of venture capital's longer duration and the implications for investors, his approach to advising multifamily offices, and the importance of being conservative and building safety margins in investments. Chris emphasizes the need to be aware of and mitigate biases in decision-making, the value of networking with other allocators, and the impact of family offices becoming more institutionalized. He also discusses the importance of rigorous due diligence and learning processes in fund manager selection. Also, don’t miss our insider segment with Martin Armstrong of Armstrong International as he discusses how to match team talent to capital.
Highlights from this week’s conversation include:
Chris’ background and expertise in private market investments (0:12)
Challenges of Venture Capital (2:14)
Multifamily Offices and Client Demographics (4:42)
Advice on Participating in Alternative Investments (6:16)
Sourcing of Fund Managers (8:22)
Behavioral Finance and Market Behavior (9:45)
Opportunities in Private Credit (12:37)
Behavioral Finance in Due Diligence (13:17)
Insider Segment: Matching Team Talent to Capital (15:59)
Valuing People and Operations in Startups (17:36)
Market Bubbles, Crashes, and Underwriting Strategies (19:10)
Networking, Learning, and Building Brand (24:39)
Impact of Institutionalization on Private Investments (26:31)
Negotiating with Fund Managers (29:36)
Adapting Criteria for Fund Managers (32:21)
Fun Fact: Chris’ Private Detective Days (33:15)
Final Thoughts and Takeaways (35:45)
Caprock, founded in 2005, provides aligned management of complex wealth for ultra-high-net-worth individuals and families. Caprock goes beyond investment execution, managing each client’s entire balance sheet for true alignment with their objectives. The firm is a privately held, multi-family office with more than $8.6 billion in assets under advisement. Caprock specializes in non-public markets, managing more than $4 billion in private market investments. Furthermore, Caprock adheres to a longstanding and principled approach to integrated impact investing. The firm serves as a full-service outsourced Chief Financial Officer and Chief Investment Officer, offering clients unique portfolios that secure their financial legacy, free from Wall Street’s constraints and conflicts. The firm is an SEC-registered investment advisor and a founding B-Corporation with locations in Boise, Seattle, San Jose, Newport Beach, Park City, New York, and Austin. This site is intended to provide general information about Caprock and is not a solicitation or offer to sell investment advisory services except in states where we are registered or where an exemption or exclusion from such registration exists. All content is for informational purposes only and may not constitute a complete description of available investment services. Registration with the SEC does not imply a certain level of skill or training.
Armstrong International is a specialist financial services executive search firm with 30 years'​ experience across Public and Private Markets. Our consultants possess deep subject matter expertise within; Fixed Income, Equities, Private Equity, Private Debt, Digital (Data Science & Technology), Private Wealth, Corporate Finance, Real Estate, Infrastructure, Emerging Markets, Credit, FX, Emerging Markets & Commodities We are trusted by some of the world's leading financial institutions, who use us for 3 primary reasons: industry expertise, speed of hire, and ease of doing business. We like to innovate and have been at the forefront of some of the most profitable and exciting changes in the industry, including the technology revolution and the ever-expanding world of Private Markets.
Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies.
The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.