John PowersEx-Stanford endowment chief John Powers has been recruited to run Credit Suisse’s hedge fund unit, the bank has confirmed.
Powers, who left the $25 billion endowment this year after 10 years as CIO, will be buying minority stakes in hedge funds and other investment managers for the Swiss Bank.
A spokesperson said Powers began his post as co-head of the unit in July and is based in New York City.
Credit Suisse officially exited from the hedge fund-buying business in 2013 as a response to stricter regulations that limited the amount big banks could invest in riskier assets.
The bank has also recruited Anthony Maniscalco, a managing director at Blackstone, as the other co-head. He is set to join Powers in New York at the beginning of Q4, the spokesperson said.
The Wall Street Journal reported Credit Suisse’s new unit will be buying roughly 20% stakes in hedge fund firms in addition to other alternative investment firms.
Powers is no stranger to the hedge fund business: Under his leadership, Stanford’s endowment had more than 15% of its total assets invested in hedge funds.
The university said the endowment grew from $12 billion in 2006 to $21.4 billion in 2014. It was also able to fully rebound from the damage of the financial crisis, recording a 13.1% annualized return in the five years since 2008.
“John Powers is a talented financial executive who has served the university and its educational mission expertly during his tenure,” Stanford President John Hennessy said last year. “[He] has built a team within the Stanford Management Company that combines deep investment knowledge with an understanding and appreciation of the university it serves.”
The Palo Alto, California-based university appointed Robert Wallace as Powers’ successor in March. Wallace joined the endowment from London-based private investment firm Alta Advisers and was formerly at the Yale Investments Office.
The new CIO made news in July when he dismissed the majority of Stanford’s investment staff just months after taking on the role.
“It is not unusual for staff changes to occur following a transition in leadership in an investment organization,” a Stanford spokesperson told CIO last month. “Rob Wallace has been working since March on an investment strategy that places different demands on the organization.”
Related: Ex-Yale Investor to Lead Stanford Endowment & Stanford CEO Dismisses Majority of Investment Team