Bain Capital agreed to take over management of Harvard Management Co.'s $3.4 billion portfolio of direct real estate investments, a Bain Capital spokesman confirmed.
Effective Feb. 1, HMC's real estate team, which consists of about 20 investment professionals, will become Bain Capital employees. Dan Cummings, currently managing director and head of real estate at HMC, will lead the team, which will be renamed Bain Capital Real Estate.
HMC oversees Cambridge, Mass.-based Harvard University's $37.1 billion endowment.
Last January, HMC announced plans to reduce the size of its 230-person staff by about half by the end of 2017, according to a letter to the Harvard community from CEO Nirmal P. "Narv" Narvekar, who became president and CEO on Dec 5, 2016.
Mr. Narvekar in the letter noted that the team responsible for managing HMC's direct real estate investments was expected to leave and become an external manager by Dec. 31.
Bain Capital is a private investment firm with $85 billion of assets under management.
HMC spokeswoman Kate Murtagh declined to comment further.