Rice University's Endowment Posts 4.2% Gain in Fiscal Year

  • Value of Houston-based fund rose to record $5.6 billion
  • Fund invested in publicly traded stocks, hedge funds

Rice University, the wealthiest private university in Texas, posted a 4.2 percent investment gain on its endowment for the fiscal year ended June 30.

The size of the fund grew about 1.3 percent to a record $5.6 billion, according to the Houston-based school’s website. One third of the portfolio as of June 30 was invested in publicly traded stocks, and 16 percent each in hedge funds and venture capital/private equity, the same asset allocation as last year. The fund’s 10-year annualized return is 8.6 percent.

“The endowment plays a vital role, as distributions provide approximately 40 percent of the university’s operating revenues, which make it the single largest revenue source to the operating budget,” the school said in a statement. The endowment has been managed by Allison Thacker since 2011.

The median return for endowments and foundations with more than $500 million in the latest year is 3.6 percent, according to an estimate by Wilshire Trust Universe Comparison Service.

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