In Defense of the Endowment Model, Rightly Understood

September 27, 2024


We are excited to introduce The Long View
: a new series from GEM’s Co-CIO, Matt Bank, exploring a range of topics relevant to the fiduciaries and allocators of institutional capital.


 

The “Endowment Model,” we’re told, is under pressure. For our country’s endowed civic institutions, it’s allegedly too complex, illiquid, and costly. However, in our experience, reports of the “death” of the Endowment Model have always been greatly exaggerated. When properly understood, assessed, and executed, endowment-style investing looks a lot like any other form of active management, with the same attendant virtues and tradeoffs.

In the first of his three-part series on the Endowment Model, Bank dissects:

  1. What the Endowment Model is,
  2. What the Endowment Model is not, and
  3. How endowment-style investing is best implemented for long-term, multi-asset portfolios

 

Read More

Recent Insights

2025 Impact Report: Promise & Precaution

Our 2025 Impact Report explores a key question shaping the future of impact investing: how can investors support AI’s development and deployment in ways that maximize its benefits while mitigating its risks?

Emerging Managers Think Outside the Box in Parched Fundraising Era

As dealmakers leave established firms to launch their own, many are turning to deal-by-deal and hybrid structures first. Caroline Dallas, a Managing Director in GEM's Investment Research Group, spoke with Buyouts about why GEM sees this as a natural market evolution.

GEM Announces Senior Leadership Promotions

GEM announced the promotion of six senior investors to Managing Director. The promotions reflect the depth and continuity of GEM's investment leadership across buyouts, venture capital, marketable investments, client strategy, and investment sourcing, and reinforce the firm's long-term commitment to leadership development and the pursuit of investment excellence.

Connect with us

Let’s start a conversation about how we can help.