University of Kentucky, Lexington, is evaluating proposals for a real estate manager, the first move into the asset class for the school's $500 million endowment, said Susan Krauss, director of investments. The endowment will put 5% to 8% of its assets into the class. The fund issued an RFP in July, and the committee expects to interview finalists at the end of September. The type of real estate investment won't be decided until after the interview process, she said.
Funding will come from reducing the endowment's fixed-income portfolio, currently at 30% of assets, said Ms. Krauss. The remaining 70% of endowment assets are in equities. Ennis Knupp is assisting.