What separates the venture investors who generate extraordinary returns from those who simply participate in the asset class? In this episode, I sit down with Jeff Diehl, Managing Partner and Head of Investments at Adams Street Partners, one of the world's largest private markets investors with more than $70 billion in assets under management. Jeff shares lessons from over four decades of venture investing, including why access to top managers matters more than almost anything else, what 14,000 realized venture exits have taught Adams Street about return generation, and why portfolio construction often matters more than stock picking. Highlights: Why access to top-quartile venture managers is the single most important factor in venture investing The data behind venture capital's unmatched persistence of returns What Adams Street learned from nearly 14,000 realized venture-backed company exits Why just 7% of companies generated 100% of venture gains The critical role of portfolio construction and time diversification How Adams Street uses co-investments and secondaries to increase exposure to breakout winners Why venture capital succession planning is notoriously difficult The relationship between incentives, culture, and long-term investment performance Whether venture capital is becoming more concentrated among a handful of mega-firms Why private markets continue to capture a growing share of global growth opportunities Jeff's most expensive investing lesson and why mistakes are essential for becoming a great investor Guest Bio: Jeff Diehl is the Managing Partner and Head of Investments at Adams Street Partners, a global private markets investment manager with more than $70 billion in assets under management across private equity and private credit strategies. He oversees the firm's investment activities and overall management while serving as Chairman of both the Portfolio Construction Committee and Executive Committee. Under his leadership, Adams Street has expanded its global footprint to more than 330 professionals across 14 offices worldwide. Are you interested in sponsoring the How I Invest Podcast? Please email David Weisburd at [email protected]. We’d like to thank AlphaSense for sponsoring this episode! Sponsor: AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more. Stay Connected with David Weisburd: X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Pierce: https://www.weisburdpierce.com/ Stay Connected with Jeff Diehl: LinkedIn: https://www.linkedin.com/in/jeffrey-diehl-63a0701/ Questions or topics you want us to discuss on How I Invest? Email us at [email protected]. Disclaimer: This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions. (0:00) The Two Rules That Explain Almost Every Venture Outcome (0:43) Why Venture Capital Has More Persistence Than Any Other Asset Class (5:01) What 14,000 Exits Taught Him About Venture Returns (7:57) The Shocking Reality: 7% of Companies Create 100% of the Gains (9:22) Why Every Great Venture Co-Investment Starts With GP Relationships (10:33) The Hidden Reason Growth Investors Are Moving Into Private Markets (13:11) Why Succession Fails at Most Venture Capital Firms (16:23) The Culture and Incentive System Behind Top Investment Organizations (24:59) Can Size Become a Moat in Venture Capital? (33:53) The $12 Million Mistake He Still Keeps as a Reminder