University of North Carolina at Chapel Hill may hire several real estate opportunity fund managers, said Mark Yusko, chief investment officer. The $1 billion endowment probably will increase its real estate allocation to a range of 8% to 10% of total assets, from its current 6.5%. Funding will come from cash and a possible reduction in REITs, which are now at 3% of total assets. It also is re-evaluating its domestic value and growth equity mix currently 63% value, 37% growth and probably will move toward its target of an even split between the two strategies. The fund will decide in the next few months how to accomplish the move.
The endowment also committed $3 million to Foundation Capital IV and $5 million to First Reserve IX, an energy fund, Mr. Yusko said. Funding will come from cash. It also created a new asset class, enhanced fixed income, which includes non-U.S. bonds, distressed debt, mezzanine and high yield. The endowment also committed $20 million to Churchill Capital Partners IV, a mezzanine fund. Funding will come from rebalancing, he said.