How I Invest with David Weisburd
E154: How a First-Generation Immigrant Became a Top CIO: Paul Chai's Story
11 Apr 2025
Paul Chai’s journey from first-generation immigrant to Chief Investment Officer of a $1 billion endowment is anything but conventional. In this episode, we unpack how he transitioned from aerospace engineering to managing capital, his approach to investing in “outsiders,” and the delicate balance of taking risk in hedge funds, GP stakes, and tactical trades like TALF 2.0. Paul shares how Kansas State University's endowment supports the school’s mission, why they invest in lower middle market buyouts and small hedge funds, and how they find and evaluate emerging managers.
Full Episode
I've always felt that I've been an outsider for the most of my life. Being new to this country, being somebody who had transitioned from career to career positions throughout my life. I've been an engineer, I've been a consultant, and then coming into the family office and as somebody who came into the Endowment Foundation space without a whole lot of pedigree.
You're going after a manager where you're meaningful to them, where it's really a two-sided street. Why does that matter?
For us, like you said, it's a two-way street. So what we can contribute, our GPs are successful. We are in turn also benefiting from their strong performance and become successful. For six months of placing on the trade, Telv 2.0 investment generated an 8% return. That's roughly four times of the 2% return, I guess, the U.S. aggregate index for bonds during the same period.
So you have a very unique background for chief investment officer. Tell me about your background. Thank you so much again for having me on today, David. It's a real honor to be here. I'm a first generation immigrant from Taiwan. My mom brought me and my brother to the U.S. when I was 14 with very little English ability. I eventually graduated from MIT with a degree in mechanical engineering.
After college, I worked in the aerospace industry as an engineer and the semiconductor industry as a consultant. I spent 12 years in the family office, gaining invaluable investment experience. In 2018, I saw an incredible opportunity to join the Kansas State University Foundation's investment team.
And when our longtime CIO, Lois Cox, retired in 2023, I had the privilege of stepping into her role. So you are a first generation immigrant like myself. In what ways was being first generation an advantage and which way was it a disadvantage?
I've always felt that I've been an outsider for the most of my life. Being new to this country, being somebody who had transitioned from career to career positions throughout my life. My life, I've been an engineer, I've been a consultant, and then coming into the family office and somebody who came into the endowment foundation space without a whole lot of pedigree.
So this is something that I find to be both a disadvantage and an advantage. The advantage being that I can be more adaptable. I can... Getting comfort in my environment, I've learned to really try to open myself up by sharing my own personal life to people who may be less familiar with my background.
That's one way for me to also get them to open up to me and to learn about their culture and their backgrounds. So I do find that to be an advantage for me to build connections with people in different backgrounds.
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