<p>some one is complaining of unfair competition :)</p>
<p>Might want to add UChicago to that list with an endowment of $6.58 billion.
[The</a> Endowment | The University of Chicago](<a href=“http://www.uchicago.edu/annualreport/financials/endowment.shtml]The”>http://www.uchicago.edu/annualreport/financials/endowment.shtml)</p>
<p>Numbers are net of debt and Chicago has $3B in debt. Chicago has been one of the most aggressive and consistent issuers of debt-another $250M in January.</p>
<p>[The</a> lexicon of hedge funds: From alpha to smart beta | The Economist](<a href=“From alpha to smart beta”>From alpha to smart beta)</p>
<p>Too funny. All you need to know about how Wall street operates.</p>
<p>What scary to me, is I do a lot of Private Equity work, and occassionally we see a sale between limited partners (investors), and it is usually well below what partnership values its assets at.</p>
<p>To me, another scary issue, is does college own its buildings (for the most part) or lease them.</p>
<p>When looking at debt, you also need to consider whether the university has a major medical center that is included. I know of one university that has over a billion in debt, but most of that was for new medical research and health care buildings, and the revenues from those buildings easily fund the debt payments. The medical center at that university actually returns large net profits to the university for academic purposes each year. </p>
<p>That university says one of their biggest issues for future budgeting is whether the federal government will reduce the allowable overhead they can charge for research grants.</p>
<p>Charlie, you are absolutely right. These are complicated issues, especially for larger schools.</p>
<p>[Experts</a> split over private equity | Yale Daily News](<a href=“http://www.yaledailynews.com/news/2012/feb/21/experts-split-over-private-equity/]Experts”>http://www.yaledailynews.com/news/2012/feb/21/experts-split-over-private-equity/)</p>
<p>This is interesting. A Yale professor’s study that points out how worthless private equity is, yet his University has 60% of its wealth invested in private equity. Professor states the funds took 70% of the gross profits in fees over the past decade-leaving only 30% for the investors who risked their money.</p>
<p>[Oppenheimer</a> PE fund in valuation inquiry - WSJ | Reuters](<a href=“http://www.reuters.com/article/2012/02/24/oppenheimer-revaluation-idUSL4E8DO0YF20120224]Oppenheimer”>http://www.reuters.com/article/2012/02/24/oppenheimer-revaluation-idUSL4E8DO0YF20120224)</p>
<p>First case to be brought dealing with Private Equity Valuation fraud. Bradley University is cited by WSJ as one of Universities invested in this fund.</p>
<p>[Investors</a> Push For Private Equity Fee Cuts | VCCircle](<a href=“http://www.vccircle.com/500/news/investors-push-for-private-equity-fee-cuts]Investors”>http://www.vccircle.com/500/news/investors-push-for-private-equity-fee-cuts)</p>
<p>Looks like some sanity is coming to PE fees-investors actually asking that they only pay management fees on invested capital–not on committed and invested capital.</p>
<p>Unless Santorum is elected, at least the public universities aren’t going anywhere.</p>
<p>Since we occassionally trash private equity here…</p>
<p>A friend’s father invested in a pe fund 10 years ago…</p>
<p>And he doubled his money over the last 10 years…</p>
<p>Somehow this put this pe fund in the top 20% of all pe funds…according to the letter the pe firm sent out.</p>
<p>Doubling your money over 10 years gets you in the top 20% of your space?</p>
<p>Hmmmmm</p>
<p>A post on the previous page mentioned colleges that lease their building space from others. That is new to me. Does this involve the college selling their buildngs to investors and then leasing them back? I know that is done with municipal buildings and some corporate buildings, but I had not heard of it with colleges.</p>
<p>Charlie, I haven’t heard of that either atleast not with top rated schools.</p>
<p>Stark, One question I would have is has he receved that amount of cash back from the PE fund or does that still reflect what the PE fund says their fund is now worth. If it was a 2002 vintage fund then I think 7% a year is not so good, and they should have exited most of their investments by now.</p>
<p>One other reaction, the main reason the SEC is investigating PE funds is because every fund claims that it is in the top 20% of all funds return. If they didn’t say that they couldn’t get anyone to invest with them. So the SEC is looking at false advertising. Its kind of like how endowments no matter how bad they do seem to always out perform whatever they claim to be their benchmark.</p>
<p>I don’t have that much faith in the SEC…</p>
<p>They are out gunned…</p>
<p>My friend’s father is cashed out.</p>
<p>Dstark – it depends which 10 years.</p>
<p>[News</a> & Press - Maple revolutionaries](<a href=“http://www.preqin.com/item/maple-revolutionaries/102/4886]News”>Preqin | Alternative Assets Data, Solutions and Insights)</p>
<p>Canadian approach makes alot of sense given that 70% of returns go to PE funds leaving only 30% for investors. HYPS have the size to take this approach-will be interesting to see if they do. Probably wont because PE and Hedge fund bigs dominate College Boards and are big givers.</p>
<p>Charlie, public Us generall need state permission to sale/leaseback. [Ohio</a> begins selling off its assets to raise cash](<a href=“http://www.springfieldnewssun.com/news/ohio-news/ohio-begins-selling-off-its-assets-to-raise-cash-1198516.html]Ohio”>http://www.springfieldnewssun.com/news/ohio-news/ohio-begins-selling-off-its-assets-to-raise-cash-1198516.html)
but some have given that.</p>
<p>
</p>
<p>My google finance graph as of today tells me that the S&P 500 is up about 21% over the past 10 years, from about 1130 to 1370. That’s not considering dividends though.</p>
<p>I would think a doubling from around 10 years ago is a pretty good return. Of course, had you bought 30 year treasuries back then, you probably have doubled and then some, but that wasn’t what the high return seeking investors were looking to at the time.</p>
<p>The return is ok…well maybe not for the risk…</p>
<p>The fact that that return is supposedly in the top 20% of all pe funds…</p>