Michigan State Adds to Alternative Investment With Drake Capital

  • MSU's endowment doubles its commitment to $60 million
  • Drake portfolio invests directly in emerging manager funds

Michigan State University’s endowment doubled its commitment to $60 million to an outperforming alternative investment fund run by Drake Capital Advisors.

The school’s trustees on Friday approved the allocation. In 2015, the Drake portfolio outperformed Michigan State’s mature hedge fund portfolio by 5.4 percent, according to an agenda submitted to the board.

“The performance thus far has shown that Drake can stand up to MSU’s mature portfolio, even in some difficult market times,” the investment managers wrote in the agenda.

The Drake portfolio makes direct investments with emerging manager funds with less than three-year track records and less than $500 million under management, according to the agenda.

Michigan State, whose endowment was valued at $2.3 billion as of June 2015, first placed money with the Greenwich, Connecticut-based firm in September 2013.

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