Yale Investments, which manages Yale University's $40.7 billion endowment fund, is rolling out a program to help aspiring asset managers start their own investment funds.
The Prospect Fellowship is an eight-week program where five individuals will have the chance to “hone their investment approaches and receive funding to build their businesses ... while harnessing the resources of Yale Investments and forging deep connections within (Yale Investments') office and network," according to a notice on the New Haven, Conn.-based university's website.
Yale Investments will lend each fellow up to $2 million in working capital to help build up their new funds. Then, each fellow will receive a minimum investment of $25 million at launch with an additional $25 million as a follow-on investment.
In return, Yale will receive capacity rights and pro rata co-investment rights, but will not acquire stakes in the funds or participate in revenue sharing.
Applications for the fellowship — which will take place in the spring of 2025 — are due by Oct. 14. Winners will be selected by the end of 2024.
A program spokesperson said the impetus for the fellowship stems from Yale’s “willingness to back up-and-coming, often unproven investment talent.”
With Prospect, “we hope to offer a new avenue for productive, value-added partnership at the moment when it is most impactful,” the spokesperson added.
“Serious candidates will likely have significant investment experience, although we do not favor one particular candidate profile — you may have developed your skills through life experience, which we find exciting," Yale said in the notice.
Applicants do not have to be Yale graduates, the spokesperson noted.
