The Future of Private Investments with Steve McCourt, CFA (#13)

In this episode of Building Better Portfolios hosts Josh Flade and Paisley Nardini sit down with Steve McCourt, co‑CEO of Meketa Investment Group, which advises on over 2.3 trillion in assets across pensions, endowments, and other institutions. Steve walks through his 31‑year career at Meketa, the evolution of institutional consulting, the democratization of private markets into 401(k)s and wealth management, and why co‑investments and AI are two of the biggest structural shifts in portfolios today. The conversation is highly actionable for advisors and serious investors who want to build more institutional‑quality portfolios using private markets and modern tools like AI.

Highlights Include:
Steve’s unconventional path into investment consulting and growing Meketa from an 8‑person Boston shop to a 260+ person, $2.3T advisory firm.

How institutional consulting really works: governance, boards of trustees, delegation of authority, and why this is fundamentally a client service business, not just an investing business.
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The democratization of private markets into 401(k)s: why Steve thinks this is ultimately good public policy for savers and for the broader economy despite education gaps.
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Practical steps for advisors and individuals to invest more like institutions, including using diversified private market interval funds and model portfolios.

The rise of co‑investments as a fee‑efficient way to access private equity and infrastructure, and why many leading institutions now put half or more of their PE portfolios into co‑investments.

How Meketa and asset managers are actually using AI today—drafting research, documenting 2,000+ manager meetings a year, and serving as an objective “straw man” to challenge asset allocation assumptions.
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Why AI may matter more in private markets than in already‑efficient public markets, and how it could eventually pressure the illiquidity premium.

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The views and opinions expressed are those of the hosts and do not reflect the views of any employer or firm. This podcast is for informational and entertainment purposes only and should not be considered investment, legal, or tax advice.


⏱️ CHAPTERS TIMESTAMPS
00:00 – Intro & guest background
01:20 – Steve’s 31‑year career at Meketa
06:15 – Personal story: identical twin
07:30 – How institutional consulting relationships work
14:00 – Democratization of private markets & 401(k)s
19:50 – Education gaps and access to privates
22:45 – How advisors can invest more like institutions
26:40 – Rise of co‑investments to reduce fee drag
30:20 – What a co‑investment is (KKR example)
34:20 – Adverse selection question in co‑investments
34:40 – AI in consulting and manager due diligence
38:50 – AI’s impact on public vs private markets
40:50 – AI as an objective “straw man” for portfolios
42:45 – Closing thoughts and future co‑investment deep dive


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