Rice University to Teach & Invest

Reported by Greg Barr, a Senior Reporter, at the Houston Business Journal:

Rice University forms investment company

A new internal company will oversee financial investments for Rice University. The Rice Management Co. will be headed by Scott Wise, who has been appointed president of the new entity. Wise was previously vice president for investments and treasurer at the university.

Although the company is part of the university and not a separate legal entity, it has its own bylaws and a separate board of directors appointed by the Rice Board of Trustees. It replaces the board’s investment committee. The company has 13 investment professionals and three administrative support staff members. Although the majority of its board will be Rice trustees, several external advisers will be elected.

Jim Crownover, chairman of the Rice Board of Trustees, said a number of Rice’s peer institutions have formed similar companies to manage their endowments. Some of Wise’s other administrative duties will be handed over to other university employees so he can concentrate on investment decisions.

“The performance of the endowment is crucial to Rice’s long-term success,” he said, noting that the endowment accounts for about 45 percent of the university’s annual budget. “The Rice Management Co. will allow us to have a more focused approach to governing and managing the endowment. It will also allow us to tap the experience and skills of top investment professionals across the country by bringing in outside members to the board of directors.”

Rice’s endowment fund was worth $3.6 billion as of June 30.