Tag: #privateequity

Investors have committed billions of dollars over the past several years to fund managers that buy modest stakes in private-equity firms, but some of those same investors now want to go it alone.

“Private equity is a great business to own with highly recurring revenue, high free cash-flow margin, large upside kicker in the form of [profit shares or] carried interest,” said Brendon Parry, managing director of private investments with TIFF Investment Management. The nonprofit organization, which acts as an outsourced chief investment officer for other nonprofit groups and foundations, is considering investing directly in firm-management companies.

More Investors Consider Direct Route to Owning Stakes in Private Firms

Expect more college and university endowments to invest in private equity and venture capital moving forward. That was one takeaway from a conversation with leaders of TIFF Investment Management, a firm that advises nonprofit organizations, including higher-education institutions.

The schools that saw the largest returns in fiscal 2021, a record year for university endowments, profited most from private equity and venture funds, said Kane Brenan, TIFF’s CEO, and Jess Portis, head of member portfolio management and services. That’s inspiring more college endowments to find ways to get a piece of the action. Private equity and venture capital accounted for just 2.3% of asset allocation in endowments between $25 million and $50 million, according to the National Association of College and University Business Officers-TIAA 2020 “Study of Endowments.” Meanwhile, endowments over $1 billion relied on those alternative investments for a quarter of their asset allocations.

TIFF hosted a webinar with Williams College titled Private Equity Education and Q&A on September 30th.   Chris Anderson, Brendon Parry, CFA, and Kevin O’Connell, CFA were joined by Julia Crosby, Managing Director, from the Williams College Investment Office.

The discussion included a review of key fundamental principles of private equity investing and why it remains an important component of endowment portfolio construction.  TIFF introduced a Private Equity Primer to provide information about Private Equity basics on the call.  You can access the Private Equity Primer here.

You can view the webinar through the link below.

Webinar: Private Equity Education and Q&A

Please note that this webinar has been edited from its original recording to shorten its length.  This webinar is for general informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy securities. The asset classes discussed may not be suitable for all investors.  All expressions of opinion are subject to change.  Past performance does not guarantee future results.  All investments are subject to risk, including the possible loss of principal.

PANELISTS

JULIA T. CROSBY
Managing Director, Johnson, Williams College Investment Office
Julia Crosby serves as Managing Director, focusing on global public equity (long-only) and private equity (buyouts, venture capital, and real estate). Prior to joining the Investment Office in 2012, Ms. Crosby was a Research Consultant at NEPC, Private Equity Senior Manager at Alcatel-Lucent Investment Management Corporation, Vice President at Silicon Valley Bank, and Senior Associate at BancBoston Capital. Ms. Crosby holds a B.S. in Business Administration from Babson College.

CHRIS ANDERSON
Director, Private Investments – TIFF Investment Management
Chris Anderson joined TIFF in 2015. He performs investment research and selects and monitors external investment managers, secondary interests, and co-investments, focusing on TIFF’s Private Investments Program. Prior to joining TIFF, Mr. Anderson spent six years managing the private equity portfolio for Alcatel-Lucent Investment Management Corp., and three years as an investment associate focusing on buyout and venture capital investments at SVG Advisers. He holds a BS in marine engineering systems from the United States Merchant Marine Academy and an MBA from the F.W. Olin Graduate School of Business at Babson College. Mr. Anderson also serves as Chairman of the private equity committee for the Babson College Endowment and is a member of the College’s investment committee.

BRENDON PARRY, CFA
Managing Director, Private Investments – TIFF Investment Management
Brendon Parry joined TIFF in 2011 and serves as a Managing Director, overseeing TIFF’s Private Investments Program, including the selection and monitoring of external managers, secondary interests, and co-investments; risk management; and portfolio construction. He is a member of TIFF’s Investment Committee. Prior to joining TIFF, Mr. Parry was a Senior Associate at Providence Equity Partners and worked in the consulting group at Cambridge Associates. Mr. Parry holds an AB in economics from Brown University and an MBA from Harvard Business School. He is a CFA charterholder and serves on the Investment Committee of Belmont Day School.

KEVIN O’CONNELL, CFA
Director, Member Strategy – TIFF Investment Management
Kevin O’Connell joined TIFF in 2017 and serves as a Director in the Member Strategy Group. He focuses on outreach to existing and interested member organizations, communicating TIFF’s strategies, portfolio characteristics, investment approach, and policies. Before joining TIFF, Mr. O’Connell was a vice president in the Private Wealth Management group at Goldman Sachs and previously served in outreach roles at BNY Mellon Investment Management and Westfield Capital Management. He holds a BA in art history from Boston College, holds an MBA from the University of Virginia’s Darden School of Business, and is a CFA charterholder. Mr. O’Connell serves as President of the Alumni Council of The Roxbury Latin School and and is a member of the Weston Soccer Club Board of Directors.

TIFF aims to serve the private equity investment needs of our nonprofit members.  We recently developed a Private Equity Primer as a guide to understanding the basics of private equity.  You can access the primer by clicking on the Download PDF link above.