On this episode of The Distribution, Brandon Sedloff and Raphi Schorr explore what makes inefficient markets the last bastion of alpha in private investing. Schorr, Deputy Chief Investment Officer and Partner at HighVista Strategies, explains how his firm deploys $14 billion across overlooked corners of the market, from lower middle market private equity to venture capital, private credit, and public biotech, where large addressable markets, poor information, and limited competition still reward patient capital and deep networks.

They discuss:

• Why lower middle market private equity operates beneath the radar of most institutional investors
• How backing fund one managers in venture capital creates decades of compounding access
• Why 50% of the S&P 500 is venture-backed and what that means for where value is created today
• The rise of GP-led secondaries in the lower middle market as sponsors seek to hold their crown jewels longer
• How pattern recognition built over 20 years helps identify winning managers and companies in fragmented markets

This episode offers a clear view into how experienced allocators find alpha in markets most investors never see.