Indiana University Foundation, Bloomington, hired RCP Advisors to manage a $10 million buyout portfolio, said Gary Stratten, CIO. The asset class is new to the $1.1 billion foundation; funding will come from rebalancing. The hiring is part of the foundation's new target asset allocation, which increases alternative investments to 28% of assets, from 10%, by mid-2006.
Fund officials are likely to hire an active international small-cap equity manager by the end of the first quarter. Consultant Fund Evaluation Group compiled a shortlist of candidates, but Mr. Stratten declined to identify the finalists. The search was conducted because the fund also raised the international equity target to 15% from 10%. International small cap is a new asset class.
The foundation also increased its hedge fund target to 10% from 5%; real estate to 5% from virtually nothing; and timber to 3% from virtually nothing. The fund's consultant will also compile shortlists for upcoming searches for managers in those asset classes.