On this episode of the Going Long Podcast, Sarah Williamson welcomes Adel Alderbas, Chief Investment Officer of Wafra, to discuss how the firm is redefining the landscape of alternatives and pioneering new investment models that benefit both asset owners and emerging managers. For listeners interested in the intersection of long-term investing, alternative assets, and entrepreneurial innovation, this episode offers valuable insights into how to navigate these areas successfully.

Topics include:

[00:02:04] – Introduction and background on Wafra: Adel Alderbas introduces Wafra’s 40-year history and its evolution from a parent-focused firm into a $28 billion global alternatives manager. Their differentiated strategy includes 3 main pillars: strategic investments, real assets, and their real estate investing program.

[00:04:21] – The GP-Staking model explained: Alderbas describes Capital Constellation as a partnership of global investors working together to support emerging asset managers. Wafra’s unique institutional DNA, combining “LP humility” with “GP rigor,” enables it to innovate and lead in alternative investments.
[00:07:46] – The challenges of balancing long-range liabilities with keeping portfolios vibrant: Alderbas emphasizes prioritizing investor entrepreneurs who can build sustainable, value-adding businesses that will outlast their own leadership.
[00:10:39] – The importance of relationship-building: Alderbas highlights the emotional loyalty and stronger alignment that comes from backing investor entrepreneurs early, emphasizing the strategic benefits for asset owners – particularly early co-investment access and valuable market intelligence. He highlights the value of transparency, open dialogue, and intentionally collaborative relationships, contrasting this with the industry’s typical disengaged LP-GP dynamics.
[00:22:14] – Alderbas credits Wafra’s CEO for fostering a culture of transparency and cross-disciplinary collaboration. Alderbas emphasizes breaking down traditional investment silos—like between GPs and LPs or asset classes—which requires top-down commitment, cultural redesign, and a long-term mindset that persists through initial efforts and delayed results.

[00:29:02] – Reflecting on the dual nature of financial innovation in private markets: While tools that increase liquidity enhance accessibility, they also introduce volatility, particularly in stressed environments. Wafra maintains a long-term conviction-based approach, resisting reactive selling to rebalance portfolios when public markets dip.

S2E2: Mark Machin, CPP Investments