Yale Investments, which manages the endowment of Yale University, has launched a new program, the Prospect Fellowship, a workshop that aims to help candidates start their own funds, backed by the resources of the university and its network.
The eight-week program is remote, but fellows are expected to be in New Haven, Connecticut, for the first few days of the fellowship, although candidates can remain in the city for the duration of the program if they choose.
The fellowship is betting on “promising individuals who have a differentiated perspective on investments,” according to the fellowship website.
Regarding who should apply, the fellowship site says: “Serious candidates will likely have significant investment experience, although we do not favor one particular candidate profile—you may have developed your skills through life experience, which we find exciting.”
Fellows will be able to tap into the resources of Yale Investments and its deep connections across investment management. The fellowship intends to assist candidates in every step of starting their own funds through a structured program.
Yale Investments will lend its aspiring fund managers up to $2 million in working capital to assist in building up the new organizations. The endowment will also provide seed funding to fellows; a minimum investment of $25 million will be provided, with another $25 million as a follow-on investment.
In exchange, the endowment requests capacity rights from its fellows and pro rata co-investment rights. Yale will not take stakes in fellows’ investment firms or request revenue share agreements; “we will benefit from the returns that your fund generates, but your company belongs to you and your team,” the program states.
The university is accepting applications for its Spring 2025 cohort of five managers, with a deadline of October 14.
Following the deadline, selected candidates will be invited to a virtual interview to help the Yale investment team better understand the candidates and their plans. Finalists will be selected for in-person interviews in New Haven, and the fellows will be named by the end of the year.
Yale Investments manages the university’s $40.7 billion endowment. Known for its alternative-heavy portfolio, the “Yale Model” was pioneered by Yale’s former CIO, the late David Swensen, favoring higher allocations to alternative investments like private equity. Matt Mendelsohn was named CIO in 2021. The endowment reported earning a 1.8% return for the year and 10.9% for the decade that ended in June 2023.
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Tags: Emerging Managers, Endowments, Yale Investments, Yale University