LCG Associates has won an initial five-year mandate to serve as Texas A&M’s institutional investment advisor, according to the university system’s chancellor John Sharp.
The Atlanta, Georgia-based consultancy replaced Fund Evaluation Group, ending its 17-year tenure as investment advisor to Texas A&M. The institution requested proposals for the firm’s expiring contract earlier this year. LCG’s bid won out over 18 others, according to local newspaper The Eagle.
“We were fortunate to have tremendous response to our request for proposals (RFP) for these services,” Sharp said in the announcement. “I hope this will truly be one of those win-win relationships that will create a competitive advantage for the university system.”
Relative to the size of its asset pools, Texas A&M has tended to operate with minimal in-house investment staff. The treasury division—charged with overseeing $3.66 billion in endowment ($931 million) and operational ($2.37 billion) assets—employs just six people, according to its website.
Manager searches, asset allocation reviews, performance measuring, monthly reporting, and manager return auditing have been entrusted to the institution’s investment consultant, according to the RFP.
LCG’s contract began August 1, Sharp said, although Fund Evaluation Group will stay on board for a month-long transition period.
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