Macalester to outsource investment management

For the first time in Macalester’s history, the college will partner with a private firm to manage its investments. The decision was made by the Board of Trustees with the goal of delivering consistent risk-adjusted endowment performance with  greater access to top-tier fund managers. 

“While this will be a new experience for Macalester, it is common for colleges and universities to work with private firms to manage their endowments,” said Carrie Norbin Killoran ’94, chair of the Board of Trustees. “This strategic shift in our investment approach has been made with one overarching goal in mind: To deliver consistent performance that grows the endowment’s assets over time.”

Since 2002, the college’s Investment Office has been responsible for managing the endowment. Before 2002, it was the chief financial officer’s responsibility. On September 1, Macalester will close the internal Investment Office and transition management of the college’s endowment to Investure. 

Based in Charlottesville, Virginia, Investure was founded in 2003 to serve as the outsourced investment office to a small group of endowments and private foundations with a focus on nonprofits and colleges. Investure’s higher education client list includes Dickinson College, Haverford College, and Middlebury College. Their non-profit clients include the Carnegie Endowment for International Peace, the National Academy of Sciences, and the Woods Hole Oceanographic Institution. 

With the new partnership, the Investment Committee of the Board of Trustees will continue to approve asset allocation and risk tolerance policies and parameters for how the endowment’s resources are invested. The Board’s Investment Committee will retain primary oversight authority, and Investure will report to the college’s chief financial officer for day-to-day operations. The decision to outsource management of assets will not affect the college’s Guidelines for Investor Responsibility policy. 

“Investure was chosen not only because of its investment prowess, but also because of its experience working with schools and other mission-driven organizations that share similar values,” said Killoran. “The firm has experience with and a sensitivity to divestment requests that occasionally arise on college campuses like ours. In short, Macalester gains access to more top-performing investment opportunities while retaining a level of flexibility necessary for our community.” 

Trustee Seth Levine ’94 led an ad hoc Board committee to determine Macalester’s requirements for investment management, interview potential firms, and ultimately to make a recommendation to the full Board. “I’m incredibly appreciative of the ad hoc committee members and the Board of Trustees for their thoughtful engagement in this process. We recognize what an important decision this is for the college and are thrilled about the opportunity to work with Investure.”