University of Chicago endowment received a $100 million donation the largest ever for the school from an anonymous alumnus. Officials at the $5.4 billion endowment have not discussed how the donation might be invested, said David G. Booth, member of its investment committee and chairman and CEO of Dimensional Fund Advisors. Its created a lot of excitement, he said, noting that the money will be earmarked for financial aid for students.
Part of it is a challenge grant. Some of the gift might have conditions restricting placement of the money into the general endowment investment pool; those terms will have to be determined, he said.
It will be pretty easy to invest, he said. The investment side wouldnt have to change.
The endowments target allocation is 28% absolute-return strategies, mostly hedge funds; 13.5% private equity in 177 funds managed by 79 limited partnerships; 10.5% real estate, timberland, and oil and gas; 25% international equity; 13% domestic equity, mostly in Russell 1000 and Russell 1000 value index funds; and 10% in U.S. Treasury and agency securities, according to a statement from the fund.
Peter D.A. Stein, CIO of the endowment, couldnt be reached for comment. William Harms, university spokesman, wasnt able to respond with more details.