TIAA-CREF Seeds Subsidiary Covariance With $1B

Mar 29 2011 | 9:47am ET

TIAA-CREF, a financial services and retirement planning specialist for the nonprofit sector, has provided $1 billion in seed capital to its newly launched endowment management subsdiary, Covariance Capital Management.

The seed capital is to be managed as a diversified investment portfolio. Covariance will begin investing capital in the third quarter of this year.

Covariance will be based in Houston, Texas and led by Scott Wise as president and CIO. The firm will operate independently as a wholly owned subsidiary of TIAA, providing outsourced CIO services to non-profits with AUM of $100 million or more.

Covariance will offer clients access to experienced third-party investment managers in traditional as well as alternative asset classes such as private equity, real estate, commodities and hedge funds. The firm says 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,” said Roger Ferguson, Jr., 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.”
 
In addition to Wise, the Covariance executive team will include Deputy CIO Michael Jawor, former CIO of Glenwood Capital Investments, a $5 billion fund of hedge fund subsidiary of Man Group.

Covariance has also tapped Daniel Feder as senior investment manager (private equity and venture capital). Feder comes to his new post from the investment office for Princeton University’s endowment.

Ansel Mullins, formerly managing director and partner at credit hedge fund Wave Management, joins as senior investment manager (public markets and hedge funds) while Holly Hardy, formerly with Rice University’s endowment, becomes senior investment manager (real assets.)

Covariance COO Andrea Reed joins served previously as a partner at Perella Weinberg Partners and risk manager for the Perella Agility Funds.

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.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.