The rivalry between the University of Texas System and Texas A&M System — historically based on the prowess of each school's football team — was dealt another blow by the good-faith gesture of UT Chancellor William H. McRaven.
Mr. McRaven relinquished his seat on the board of directors of University of Texas Investment Management Co., Austin, to allow UT's board of regents to “consider appointing a representative of the Texas A&M System to serve in this position,” said Jenny LaCoste-Caputo, a university spokeswoman, in an email.
UTIMCO manages $39.4 billion in assets from UT and Texas A&M, including endowment assets of $19.2 billion from the Permanent University Fund and $7.8 billion from the Long Term Fund of the General Endowment Fund.
Hitherto, the nine-member UTIMCO board has been stacked toward the UT side of the investment relationship, with seven seats filled by UT representatives and two by Texas A&M appointees. Texas state law allows UT regents to appoint four UTIMCO board members, one of whom may — but is not required to be — UT's chancellor, Ms. LaCoste-Caputo said.
“As conversations have unfolded between the two systems over the past several months about the opportunity to increase the A&M presence on the board, Mr. McRaven willingly volunteered to give up his role on the board,” Ms. LaCoste-Caputo said, adding that “giving (A&M) another seat was just a good-faith gesture to balance it out a little better.”
The UTIMCO board offered another peace salvo by proposing to rename the systems' shared investment company to The University of Texas/Texas A&M Investment Management Co.