2025 tulane university endowment report
Barry
David
Rick
Dear Faculty, Staff, Alumni and Friends of Tulane University,
What a difference a year makes. After a historic year for returns in fiscal year 2021, this past fiscal year proved much more difficult to generate strong or even positive returns. With MSCI ACWI down -15.8% and Barclay’s Aggregate also down double digits, a traditional blended portfolio of stocks and bonds would have been highly correlated and generated dismal results. Fortunately, our long-term commitment to alternative assets proved to be much needed diversifiers and enabled Tulane’s endowment to generate outsized returns.
Dear Faculty, Staff, Alumni, and Friends of Tulane University,
It is my pleasure to provide you with our Fiscal Year 2025 Endowment Report. Tulane’s endowment reached a new high of $2.47 billion as of June 30, 2025, thanks to generous donations, solid financial management, and strong investment performance. Our investment strategy, grounded in patient long-term value creation coupled with prudent risk management, allows us to provide consistent financial support for Tulane’s academic programs, scholarships, and campus initiatives, even in times of market uncertainty.
During FY2022, Pooled Endowment and Eminent Scholars generated returns of 6.2% and -7.7%, respectively, well ahead of their benchmarks and the 65/35 passive benchmark return of -13.7%. Performance was led by strong results in our private capital and marketable alternatives portfolios. The private capital portfolio continues to generate a significant illiquidity premium that will be a driver of endowment performance for years to come. With marketable alternatives, our commitment and patience finally paid off as our managers were able to capitalize on idiosyncratic opportunities throughout the year. I am confident our marketable alternatives portfolio will hold up well and be a good diversifier in this particularly volatile and uncertain market environment. The stark difference in returns between Pooled Endowment and Eminent Scholars speaks to the diversification power of alternative assets in an environment where traditional asset classes have become highly correlated. Eminent Scholars’ limitation on alternative assets caused it to trail Pooled Endowment by nearly 1400 basis points during the fiscal year. Despite the difficult investment environment in FY2022, Tulane’s endowment reached a new high of $2.05 billion as of June 30, 2022.
This year presented a unique mix of challenges and opportunities in the global markets, yet our focus on long-term results and disciplined investment strategies allowed us to navigate these complexities with resilience. I am proud to share that Tulane’s endowment has achieved exceptional results over the long term. Over the last ten years, Pooled Endowment and Eminent Scholars delivered annual returns of 9.1% and 7.8%, respectively, and a combined return of 8.9%, ranking among the top 6% of all endowments, according to Cambridge Associates. Importantly, we have accomplished this while maintaining among the lowest volatility of our peers, highlighting our focus on managing risk without sacrificing returns.
F Total Endowment
F Distributions to support the operating budget totaled $90.7 million
F 65 new Endowment Funds were created during the fiscal year
F New gifts and transfers into the Endowment
F FY25 combined return of +9.3% for Pooled Endowment and Eminent Scholars
F 10-year
Over the last ten years, Pooled Endowment and Eminent Scholars generated returns of 10.6% and 8.4%, respectively, ahead of their benchmark returns of 8.0% and 6.7%, respectively. Our consistent performance has led to long-term success. That consistency has been anchored by a wonderfully talented and incredibly stable team as well as unwavering support from our Endowment Management Committee.
As we move forward, our investment team remains committed to adapting to the evolving market landscape while staying true to the principles that have served us well. We are confident that our focus on sustainable, long-term growth will continue to benefit Tulane University and its community for generations to come.
Thank you for your continued support and trust in our stewardship of Tulane’s endowment.
F Completed our 17th annual summer analyst program
While the current market environment feels daunting given persistent inflation, rising rates, a looming recession, geopolitical tensions, and global energy shortages, I am confident that our portfolio can withstand potential headwinds along the way. Over more than a decade, our staff and Committee have built a well-diversified, multi-asset class portfolio that can weather near-term challenges and uncertainty while enabling it to achieve its long-term return objectives. On behalf of myself and my entire team, we are honored to have the opportunity to manage the endowment and remain committed to serving the Tulane community.
Sincerely,
Richard Chau
Richard Chau Chief Investment Officer
IMPORTANCE OF AN ENDOWMENT
Protection – Innovation – Commitment
After 190 years, Tulane University has established itself as one of the world’s preeminent educational and research institutions. The University’s mission exists in perpetuity; continuously offering new programs and new services requires an ever-growing pool of financial resources. The Endowment is unique among the University’s revenue streams since it provides perpetual support for Tulane’s students, both current and prospective. To put the power of the Endowment in perspective, a $1,000,000 gift made twenty years ago and invested in the Pooled Endowment generated more than $1,152,000 in distributions used to recruit the
highest quality students regardless of financial need, pay professorships and fund basic research, and perpetuate community service initiatives. Most importantly, that original gift is now valued at $1,918,000 net of the payout. It is positioned to generate even greater distributions over the next decade and will continue to support the University in perpetuity. We urge you to support the Endowment because these specific gifts ensure the long-term financial strength of the Institution, benefiting future generations of Tulanians.
POWER OF COMPOUNDING (20 YEARS)
$1M GIFT VALUE OVER TIME
Total Value, $3 1 m Balance, $1.9m
Total Payout, $1.2m
After 20 years:
A $1 million Endowment Gift would have paid out $1.2 million and still be worth $1.9 million. Total value of $3.1 million.
COMPONENTS OF
Tulane Receives $17.2 million from Alumna for Geriatric Medicine and Research
A$17.2 million gift from Newcomb College alumna Myrna L. Daniels will fund geriatric and healthy aging initiatives, clinical research, a faculty chair in geriatrics, and capital improvements at Tulane School of Medicine, one of the nation’s oldest and most respected medical schools.
Daniels’ generous gift comes as the university embarks on a major expansion of its downtown campus in the heart of New Orleans.
“Myrna Daniels’ incredible philanthropy is known throughout the world,” Tulane President Michael A. Fitts said. “This gift will help usher in a new era for our School of Medicine. Thanks to Myrna, we can increase our historic investment in downtown New Orleans and forge new paths in clinical research, biotechnological innovation and interdisciplinary collaboration, especially in the burgeoning, in-demand field of geriatrics.”
The gift will bolster the School of Medicine by:
• Dedicating $9.2 million to establish the Myrna L. Daniels Geriatric Medicine Endowed Fund to support research and education in geriatrics and aging-related medical conditions, including interdisciplinary partnerships across Tulane departments;
• Committing $3 million to fund the Myrna L. Daniels Chair in Geriatric Medicine, an endowed faculty position for which a candidate search is now underway, and;
• Focusing $5 million on financing major capital projects at the School of Medicine, including new laboratories and research space.
“Tulane has long been a leader in the study of aging, and we engage expertise from academic disciplines across our campus in the multi-faceted support of health, wellness and high quality of life for our aging population,” said Tulane Senior Vice President for Academic Affairs and Provost Robin Forman. “This exciting gift from Myrna Daniels will further energize this work in the Tulane School of Medicine in ways that will echo across Tulane and throughout our region.”
Daniels, a retired speech pathologist, graduated with a bachelor’s degree from Tulane’s Newcomb College in 1952. Three generations of her family are Tulanians, including two of her grandchildren and her son Paul T. Finger, MD, a renowned New York ophthalmologist. In total, three of Daniels’ family members are graduates of the School of Medicine — a fact that helped inspire her gift.
“I am honored to give back to Tulane, a university that means so much to me and so many members of my family,” Daniels said. “Academic medicine and research are crucial
to improving and saving lives, from newborns to seniors, and Tulane’s long-term strategy for reimagining downtown New Orleans resonates deeply with me. I am delighted to support Tulane’s far-reaching humanitarian work in medicine and its goal of fostering a New Orleans biotech renaissance.”
Daniels’ gift continues a long legacy of philanthropy established by Myrna and her late husband, John H. Daniels, a Toronto architect, developer and founder of the Daniels Corp., one of Ontario’s largest real estate companies. Prior to that, John was CEO of Cadillac Fairview, which became the largest developer in North America under his leadership. Together, the Daniels’ generosity has made indelible marks in the philanthropic world and impacted innumerable people.
“This gift is a testament to the deep commitment and love of an extraordinary Newcomb graduate and Tulane family member to whom we are eternally grateful,” said Lee Hamm, Tulane senior vice president and dean of the School of Medicine. “Myrna’s gift will impact current students, patients, faculty and staff, as well as future generations.”
MARKET EVENTS FISCAL YEAR 2025
Most risk assets continued to enjoy strong returns in FY2025. Despite an increase in volatility related to US tariffs, Public Equities produced another year of impressive performance. The MSCI ACWI returned +16.2% fueled by earnings growth, betterthan-expected economic data, and central bank policy easing. Earnings growth contributed to the bulk of the return for the MSCI ACWI by contributing +10.8%, although multiple expansion still played a meaningful role by contributing +3.7%. The strong equity performance also expanded beyond the US as investors experienced solid returns across geographies.
The US market performed slightly below the international developed markets in FY2025. The S&P 500 Index was up +15.2%, as the enthusiasm for the ‘Magnificent Seven’ stocks (Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta, and Tesla) continues to drive much of the return for the index. As a result, the S&P 500 ended the fiscal year at its most concentrated level in decades with the top ten stocks accounting for nearly 40% of the index. Meanwhile, the Russell 2000 Index was up only +7.7%, as smaller companies struggled to keep pace with the AI exuberance fueling the largest public equities.
International developed markets posted strong returns during the fiscal year with the MSCI World Ex-US Index generating a +18.7% return. Ex-US equities benefitted from strong earnings ahead of tariff uncertainty, anticipation of dovish central bank policies, and currency appreciation against the dollar. While Emerging Markets performed in line with Developed Markets with a +15.3% return for the MSCI Emerging Markets, there were large variations in returns across countries. Notably, China drove Emerging Market gains with a +34.9% return for the MSCI China Index, fueled by increased stimulus and optimism around AI.
Private market performance remained challenging over the past year. Private markets continue to work through an ongoing recovery from over investment in 2021-2022, a sluggish pace of private market transactions, and limited appetite for IPOs. In the twelve months ending March 31, 2025, the Cambridge Private Equity Index returned +6.9%, while the Cambridge Venture Capital Index returned +4.8%.
Encouragingly, Private Equity saw some traction over the past year as investments and exits rebounded from recent low points in 2023. Within Venture Capital, AI-related investments continue to dominate the ecosystem by making up much of the total deal flow while being funded at lofty valuations. Despite recent challenges, private equity and venture capital have meaningfully outperformed the public markets over longer time horizons.
Fixed Income produced strong returns as monetary easing pushed short-dated yields lower. Developed Market Core Fixed Income outperformed the US, as currency appreciation produced a tailwind for outperformance. The yield curve steepened across most major economies, as monetary policy pushed down shorter duration interest rates while concerns around fiscal discipline pushed up rates on longer duration bonds.
The US economy is experiencing decelerating growth amid an uncertain tariff environment. While growth rates remain positive, economists revised down GDP growth estimates in June 2025. High tariffs and geopolitical uncertainty could cause further spillover effects from a deterioration in consumer sentiment, supply chain disruptions, inflation, or reduction in corporate investments. Despite some near-term uncertainty, we remain confident that our portfolio is well-positioned to navigate periods of volatility and maximize long-term value.
POOLED POLICY PORTFOLIO
The market value of the Pooled Endowment was $1.9 billion as of June 30, 2025. The investment of Tulane University's endowment assets is governed by the Investment Policy Statement, which is reviewed at least annually by the Endowment Management Committee of the Board of Administrators. This document sets forth governance principles, investment objectives, and risk parameters. The Policy Portfolio for the Pooled Endowment included in the Investment Policy Statement represents the expected allocation of assets that will satisfy these return objectives and risk parameters. While formulated based on long-term data series, the Policy Portfolio is dynamic and responsive in its implementation to prospective economic conditions, risks, and opportunities presented by market dislocations. The static benchmark uses the Policy Portfolio's weights, as shown to the right, and serves as one of the Pooled Endowment's performance benchmarks. Over the long term, the goal is to preserve the endowment's purchasing power after spending and inflation.
POLICY PORTFOLIO
HISTORICAL PERFORMANCE
(NET
OF FEES)
EMINENT SCHOLARS POLICY PORTFOLIO
The Endowed Chair and Endowed Professorship programs under the Louisiana Board of Regents matching program are collectively known as the Eminent Scholars Endowments. The same Investment Policy Statement governs both the investment of these assets as well as the Pooled Endowment. However, the Eminent Scholars’ Policy Portfolio is tailored to satisfy specific conditions of this matching program. These conditions include greater reliance on public stocks and bonds and limited use of hedge funds and private capital. Therefore, the resulting benchmark for the Eminent Scholars endowments shown to the right is different from that of the Pooled Endowment. In recent years, the matching program conditions were broadened, allowing for a more dynamic, diversified asset allocation. Mindful of the conditions under which these funds are generously matched by the state, many of the same investment managers and strategies are used in both portfolios.
HISTORICAL
ENDOWMENT PERFORMANCE VS. PEERS
A wide variety of metrics, such as a constructed asset class benchmark based on our policy portfolio or a passive market index, are used to evaluate the performance of our portfolios. Most importantly, we measure our long-term results versus our principal objective, which is to preserve the purchasing power of the endowment after spending and inflation. However, we also pay attention to how our colleagues at other foundations and endowments manage similar long-horizon portfolios. As shown
TULANE VS. ENDOWMENT COMPOSITE
TULANE VS. ENDOWMENT COMPOSITE
TULANE VS. ENDOWMENT COMPOSITE (PERIODS ENDING 6/30/2025 ) below, of the ~350 institutions reporting to Cambridge Associates, Tulane’s five- and ten-year returns rank at or near the top 5% of the peer universe. We have immense respect for our industry colleagues, each with a unique risk profile driven by institutionally specific criteria. We often invest in many of the same managers and openly share our research and analysis. And so, while our peer ranking is noteworthy, it is just one metric among many that we use to evaluate results.
CONTINUOUS IMPROVEMENT AND LONG-TERM SUCCESS
The chart below shows the results of our journey over the last thirteen years. In June 2013, our ten-year performance ranked in the 45th percentile of endowment returns, but over time we were rewarded for improved manager selection, constructive asset allocation, and tactical implementation, improving our ranking to the top 6% by June of 2025. During this period, the endowment has also had a lower realized volatility.
Our collective investment process seeks to continuously enhance the portfolio's risk-adjusted returns to preserve the purchasing power of the endowment over time, given the current economic environment.
CONTINUOUS IMPROVEMENT AND LONG-TERM SUCCESS 10-YEAR PERFORMANCE RANK VS. ALL ENDOWMENTS
support
SUCCESSFUL RISK MANAGEMENT
Tulane’s endowment has enjoyed particularly strong results over the last five and ten years. Generally, strong returns should be viewed with some skepticism since higher returns are often the result of taking additional risk. However, Tulane has achieved strong returns without taking on additional risk, as evidenced by the Sharpe ratio. Over the last five years, the endowment’s Sharpe ratio was 1.32, ranking Tulane in the 99th percentile among peers. Similarly, over the last ten years, the endowment achieved a Sharpe ratio of 1.01, placing it in the 99th percentile among peers.
A scatter plot is another way to show the relationship between risk and return.
Compared to the 348 endowments in the Cambridge Associates Endowment Composite database, the endowment ranks in the 1st and 94th percentiles for volatility and return, respectively, as shown in the upper left quadrant of the chart below.
The combination of unusually muted market volatility, Tulane’s asset allocation, and strong manager selection has resulted in exceptional risk-adjusted returns over the last five and ten years.
10 YEAR RISK VS. PEERS
Tulane Receives $10 million Gift from David and Marion Mussafer to Transform Career Readiness for Undergraduates
A$10 million gift from longtime Tulane supporters David and Marion Mussafer will launch a university-wide career readiness initiative, embedding paid internships and professional development into the undergraduate experience and positioning Tulane as a national leader in student success.
With the support of the Mussafer Family Foundation, Tulane will create the David and Marion Mussafer Internship Initiative to ensure every Newcomb-Tulane College student has access to paid internships, mentorships and real-world career experiences.
“This is the perfect complement to Tulane’s interdisciplinary, holistic curriculum that emphasizes hands-on learning, discovery and personal growth,” President Michael A. Fitts said. “The Mussafers’ extraordinary generosity enhances our goal of preparing Tulane graduates to become leaders who will make a positive impact on the world as they pursue their passion for collaboration, creative thinking and innovative solutions. We are deeply grateful for the Mussafers’ commitment to our students and their unwavering belief in Tulane’s mission.”
All Tulane undergraduates will have access to the Mussafer Internship Initiative’s services through an easy-to-use centralized portal. The initiative will offer students a robust framework for career development, combining high-impact preparation, personalized placement support and ongoing professional growth. The Mussafers’ gift will facilitate student stipends and employer partnerships, along with mentorship, training and immersive career experiences.
“This wonderful gift from David and Marion Mussafer will ensure that our extraordinary students have every opportunity to find their way into professional roles that best match their strengths and interests and allow them to make their most meaningful contributions to their communities,” said Senior Vice President for Academic Affairs and Provost Robin Forman. “By giving us the resources to enhance the experiential learning of our students, the Mussafers are amplifying the positive impact our graduates have on the world around us.”
The Mussafer Internship Initiative will tap Tulane’s global alumni and families network for internships and mentorships. David Mussafer, chair of the Board of Tulane, is chairman and managing partner of Advent International, while Marion Mussafer owns M Home Design Group and serves on nonprofit boards in Boston and Jackson Hole.
“Tulane has shaped so much of who I am because of the education I received here — and it has done the same for many others,” said David Mussafer. “This gift is about opening that same horizon of possibility for future generations — giving every student the chance to discover their potential and take bold first steps into their careers.”
The Mussafer Internship Initiative will prepare students to apply classroom learning to industry and professional settings and contribute across sectors.
“This initiative will empower students to graduate with the skills, experience and networks that lead to meaningful careers,” said Mollye Demosthenidy, dean of Newcomb-Tulane College. “Now, with the Mussafers’ visionary support, we can strengthen this approach and ensure that experiential learning through internships becomes a defining feature of every student’s journey.”
The Mussafers’ latest gift builds on their legacy at Tulane, which includes support to create Mussafer Hall, the university’s hub for academic advising and career services, and to endow the chief innovation and entrepreneurship officer at the Tulane Innovation Institute, where David and Marion serve on the Innovation and Entrepreneurship Council. The Mussafers are also members of the Paul Tulane Society and serve on numerous advisory councils at the university.
SEPARATELY INVESTED FUNDS
Large endowments – typically $1 million or more – which are not invested in the Pooled Endowment due to specific donor restrictions are invested separately. The Department of Treasury and Trust Investment Office in New Orleans oversee these funds. The Separately Invested Endowment Funds totaled over $246 million at fiscal year-end. They comprise common stock, fixed income, private equity, venture capital, money market, and donor-directed externally managed accounts.
GIFT ANNUITIES AND LIFE INCOME TRUSTS
Tulane University Life Income Trusts and Annuities totaled over $29 million as of June 30, 2025. State Street Global Advisors (SSGA) manages most of these assets and makes payments to the donor or other designated beneficiaries for a specified term or the life of the beneficiaries. The remainder assets are typically contributed to Tulane's endowment. These funds comprise common stock, fixed income, and real estate investment trusts. The asset allocation is determined based on the age of beneficiaries, term of trust, payout rate, and any special circumstances.
LOCATION, LOCATION, LOCATION
As one of the first universities to locate their investment office away from campus, Tulane has been recognized for its innovative approach to endowment management, paving the way for several other schools to follow our path and locate off-campus.
After 16 years in Darien, Connecticut, the investment office moved to White Plains, New York last year. Our team is settling in well and enjoying all that White Plains has to offer. We were originally motivated to establish the office in the New York City region to provide staff with the best possible access to investment managers, research firms, and industry conferences that frequently take place in the New York and Boston corridors. Conveniently located near the Metro North rail line, the locale allows for a 40-minute train ride into Manhattan or other nearby financial centers including Greenwich, Stamford, Boston, and Washington, D.C.
RICHARD CHAU, CHIEF INVESTMENT OFFICER
Richard joined the Investment Management Office in September 2013. Prior to Tulane, he helped manage a multi-billion dollar global private equity portfolio in Bessemer Trust's Private Equity Funds Group. Before Bessemer, Richard worked in the investment office at The Andrew W. Mellon Foundation. His previous experience also includes investment banking at Houlihan Lokey and investment consulting at Cambridge Associates. Richard has a BA in Economics and Chinese from Williams College and an MBA from Columbia Business School.
JAKE KRIEGSFELD ’13 , MANAGING DIRECTOR
Jake joined the Investment Management Office in June 2013 after previously completing an internship with the Office. He graduated summa cum laude from Tulane's A. B. Freeman School of Business in 2013 with a BSM in Finance and as a member of the William Wallace Peery Society, which recognizes 15 graduating seniors for academic excellence. Jake also earned a minor in Spanish and completed an international business program in Madrid, Spain. Jake is a CFA charterholder.
PAUL
WEAVER, DIRECTOR OF INVESTMENT ACCOUNTING
Paul joined the Investment Management Office in September 2008. From 2005 to 2008, Paul worked at OpHedge Investment Services as Director of Fund Accounting, where he was responsible for managing the accounting group and for calculating NAVs of large, complex hedge funds. Before OpHedge, Paul had over 20 years of experience working in various accounting-related roles for both hedge funds and large financial firms. Paul holds an MBA with a concentration in International Finance from Pace University.
BRAD BAUGUSS ’15, DIRECTOR
Brad joined the Investment Management Office in July 2015 after completing an internship with Intrepid Capital Management the previous summer. He graduated cum laude from Tulane's A. B. Freeman School of Business in 2015 with a BSM in Finance and Economics and a Specialization in Entrepreneurial Management. Brad is a CFA charterholder.
EDWARD ROMAN ’18, ASSOCIATE DIRECTOR
Edward joined the Investment Management Office in August 2018 after completing an internship with the Office. He graduated cum laude from Tulane’s A. B. Freeman School of Business in 2018 with a BSM in Finance and Management Consulting and a minor in Economics. Edward is a CFA charterholder.
HARRISON PEARLSON ’22, SENIOR INVESTMENT ANALYST
Harrison joined the Investment Management Office in July 2022 after completing an investment banking internship with Deutsche Bank the previous summer. He graduated cum laude from Tulane’s A. B. Freeman School of Business in 2022 with a BSM in Finance and a minor in Accounting. Harrison is a CFA level III candidate.
MATTHEW YAM ’23 , INVESTMENT ANALYST
Matthew joined the Investment Management Office in July 2023 following a wealth management internship at Goldman Sachs the previous summer. He graduated from Tulane in 2023 as a member of the Altman Program in International Studies and Business with a BSM in Finance and BA in Political Economy. Matthew is a CFA Level II candidate.
ZOE HAAS ’24, INVESTMENT ANALYST
Zoe joined the Investment Management Office in July 2024 following an internship with the Financial Planning and Analysis division at Goldman Sachs the previous summer. She graduated magna cum laude from Tulane in 2024 with degrees in Finance and Economics. Zoe is a CFA Level II candidate.
JANINE JANDROSITZ, DEPARTMENT ADMINISTRATOR
Janine joined the Investment Management Office in August 2016. Before joining the team, she worked for ten years as the VP of Administration for Lincoln Healthcare Leadership, where her role encompassed Human Resources and Office Management. She also worked as an Executive Assistant for Greenbriar Equity. Janine has a BS in Business Management from the University of Redlands.
ROBERT LYCOUDES, PERFORMANCE ASSOCIATE
Robert joined the Investment Management Office in January 2017. From November 2014 to January 2017, Robert worked in the Margin Lending department at Goldman Sachs. Before that, he worked at Interactive Brokers and interned at UBS Private Wealth Management. Robert received his BS in Mathematics and Finance from Sacred Heart University in 2012.
MARY KOPAS,
PERFORMANCE ANALYST
Mary joined the Investment Management Office in February of 2020. She has worked most of her career in accounting and finance roles for government contractors, Norden Systems, a division of United Technologies, as well as Northrop Grumman. She also has experience in the non-profit sector as an accountant at Norwalk Hospital Foundation and Americares Foundation. She is a graduate of the University of Connecticut with a BS in Accounting.
on the cover: The revitalized Richardson Memorial Hall at the Tulane University School of Architecture and Built Environment is an investment in sustainable architecture and preserved historic character designed to spark innovation and foster creativity.