ENDOWMENTS AND FOUNDATIONS

ENDOWMENTS AND FOUNDATIONS

An endowment is an investment fund established by a foundation that makes consistent withdrawals from invested capital.

 

The principal amount of an endowment remains steady and investment interest is used for short term funding purposes. The principal amount is often made up of donations to a foundation.

MAJOR CONSIDERATIONS

  • May prefer niche manager and strategies

  • Often comfortable being an anchor or cornerstone investor

  • Can make opportunistic investment commitments

  • Can have a long due-diligence process

 

TYPICAL ALLOCATION

Often Endowments have dedicated investment teams that can be fast moving and invest in niche strategies. A large portion of endowments invest on behalf of universities and may have investment policies that match the ideology of its student body.

 

Alternative Asset Breakdown (% of total AUM):

Private Equity: 30%

Venture Capital: 15%

Real Estate 10%

Natural Resources: 7%

 

LARGEST ENDOWMENTS AND FOUNDATIONS

  1. Ensign Peak Advisors, Utah; AUM – 100Bn

  2. University of Texas, Texas; AUM – 50Bn

  3. Bill & Melinda Gates Foundation, Washington; AUM – 47Bn

  4. Cardinal Health, Ireland; AUM – 41Bn

  5. Harvard Management Company, Massachusetts; AUM – 40Bn

  6. Kaiser Permanente, California; AUM – 40Bn

  7. Wellcome Trust, UK; AUM – 36Bn

  8. Stanford Management Company, California; AUM – 35Bn

  9. Yale University, Connecticut; AUM – 30Bn

  10. Princeton University Investment Company, New Jersey; AUM – 25Bn

PreQin 2020

ARTICLES OF INTEREST​

HARVARD ENDOWMENT IS DOUBLING DOWN ON PRIVATE EQUITY; Barrons

https://www.barrons.com/articles/harvard-endowment-is-doubling-down-on-private-equity-51571929202

 

A LOOK INSIDE YALE ENDOWMENT’S ASSET ALLOCATION; Financial Samurai

https://www.financialsamurai.com/a-look-inside-investment-asset-allocation-of-massive-university-endowments/

 

ROCKEFELLER BROTHERS FUND PROFITS FROM DIVESTING FOSSIL FUELS; Barrons

https://www.barrons.com/articles/rockefeller-brothers-fund-profits-from-divesting-fossil-fuels-01589319900