Investure LLC and Smith College Harvard Case Solution & Analysis

Alice Handy, an investment professional with 30 years of experience as head of the University of Virginia Investment Management Company, has opened a new company, asset management, aimed at medium donations and non-profit organizations in January 2004. Her business, Investure, LLC, offered the services of outside investment in the institutions with $ 150 million to $ 1 billion in assets and access to the most effective managers at a lower price than a fund of funds (FoF). Smith College, a prestigious liberal arts college with nearly $ 1 billion endowment, is interested in increasing their current allocation of private capital. Convenient and its partners are ready to meet with the trustees Smith in an attempt to win a Smith College as the first client Investure author. The case presents three different approaches to investing private capital: direct investment through traditional limited partnership, investment or investment through FoF through outsourcing model Investure author. Class discussion provides an opportunity to assess the advantages and disadvantages of each approach, introduce the basic terminology and discuss current trends in the market of private capital. Students receive cash inflows and outflows for a representative investment in a venture fund type Handy hopes to invest in the name of Smith College. The main analytical task requires students to estimate the expected gross and net profit generated by the representative of the investment in each of the different approaches and fee structures.
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by Susan Chaplinsky, Robert S. Harris, Dorothy C. Kelly Source: Darden School of Business 21 pages. Date of publication on the site: 18 Sep, 2007. Prod. #: UV0780-PDF-ENG

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