Covariance to Provide Outsourced CIO Services with Access to All Asset Classes Including Alternatives backed by $1 Billion in Investment Seed Capital, Covariance Announces Key Executives
TIAA-CREF, the leading provider of financial services and retirement planning for the nonprofit sector, announced today the expansion of its endowment management business with the launch of Covariance Capital Management (Covariance). The company also announced it is providing Covariance with $1 billion in seed capital to be managed as a diversified investment portfolio. In addition, Covariance has named key executives to its senior team.
Led by Scott W. Wise and based in Houston, Texas, Covariance will operate independently as a wholly-owned subsidiary of TIAA, providing outsourced Chief Investment Officer (CIO) services to nonprofits with assets under management of $100 million or greater. Covariance will offer clients access to highly experienced third-party investment managers in traditional as well as alternative asset classes such as private equity, real estate, commodities and hedge funds. Also, its open-architecture approach will provide customized investment solutions that can meet the unique liquidity and risk/return profiles of nonprofit institutions.
“This is part of our mission to aid and strengthen the nonprofit sector. Our clients have told us they are looking for a reliable and objective endowment management partner and we are proud to officially launch this business with a significant investment,” said Roger W. Ferguson, Jr., President and CEO of TIAA-CREF. “Under the leadership of Scott and his experienced investment team, Covariance is uniquely positioned to manage multi-asset class portfolios and help institutions meet their goals.”
“This is a very strong team,” said Scott W. Wise, President and Chief Investment Officer of Covariance. “We have strategically recruited a team that brings together expertise from both the nonprofit sector, as well as investment professionals who focused on asset management for external clients. With this solid foundation, we look forward to working with clients to develop tailored endowment management programs that appropriately address return, risk and liquidity objectives.”
As a part of building a best-in-class investment management team, Covariance introduced the following senior investment professionals:
Covariance has also recently added the following senior members to the team:
TIAA-CREF is one of the world’s largest institutional asset managers and Covariance expands the company’s existing endowment management capabilities. TIAA-CREF also provides endowment services through Kaspick & Company, a boutique investment management firm, specializing in the management of planned gift assets and mid-size endowments and TIAA-CREF Trust Company FSB, which provides institutional and private asset management services for small endowments.
Covariance will begin investing capital in the third quarter of this year.
For more information about Covariance Capital Management, visit www.covariancecapital.com.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $453 billion in combined assets under management (as of 12/31/10) and provides retirement services to the academic, research, medical, governmental and cultural fields.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
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