Private Equity
The plan committed a total of $350 million across two commitments at today’s meeting.
The plan will look to add private credit, re-establish its private equity portfolio, add complementary real estate strategies and evaluate its domestic equity portfolio this year.
As nonprofit investors expect market volatility to continue, with the possibility of an economic recession on the horizon, many are seeking early-stage private equity, private debt, real estate, infrastructure or hedge fund strategies to capitalize on macro trends that include a slowdown in economic growth, rising inflation, emerging technologies and demographic trends.
The university added a private equity commitment and a hedge fund investment with new firms in the second quarter.
The plan expects to choose a private credit consultant following finalist interviews with three firms scheduled for tomorrow.
The plan made natural resources and real estate commitments last month and will consider a 2023 private markets pacing plan this week.
The watch status is due to a co-portfolio manager’s abrupt departure from the firm.
The consultant will advise the plan’s nearly $335 million private markets portfolio.
The changes followed two separate asset/liability studies from general investment consultant Verus.
The commitments include two first time managers for the plan.