The developed market private investing model of single-asset-class funds (PE, credit, infra) is poorly suited for emerging markets. The deal flow in these regions is insufficient to support such specialized funds, leading to poor capital deployment and failing GPs.

The new approach to asset allocation treats private markets as an alternative to public stocks and bonds, not just a small add-on. This means integrating them directly into the core equity and debt portions of a portfolio to enhance returns and diversification.

While the market trends toward sector specialization, LPs should maintain a significant allocation to generalist VCs. These funds are uniquely positioned to invest in outlier founders and "weird" ideas that don't fit into a specific thesis, which are often the source of the greatest returns.

The days of the successful private equity generalist are over. Limited Partners (LPs) now demand deep, specific expertise. A firm claiming to specialize in multiple, disparate sectors is seen as lacking true differentiation and focus—a strategy that may have worked a decade ago but fails in today's competitive market.

In frontier markets like Venezuela, conventional wisdom about what makes a good business fails. Industries that are unattractive in developed economies may offer high margins and returns due to unique local factors like scarcity value, lack of competition, or favorable regulations.

After decades of isolation, Venezuela's US-overseen political transition presents a unique moment for investors. The economy's 70-80% GDP collapse from its peak creates a high-risk, high-reward scenario for those willing to invest before institutional capital returns.

In Vietnam, the best returns have come from a concentrated, hands-on model similar to a holding company, not traditional diversified PE funds. This approach allows for deep involvement in a few assets within a specific vertical, which is key to navigating the market and driving growth.

Because emerging market cycles are so unpredictable and violent, any mid-sized manager focused on a single asset class or region is not questioning *if* they will go out of business, but *when*. Business model diversification is the only path to long-term survival.

Instead of trying to have a view on everything, Herb Wagner's team embraces not knowing. They actively avoid complex situations, like Chinese property developers, where risks are opaque and dependent on government action. This discipline of knowing what you don't know is central to their strategy.