Yale University’s endowment opened applications for the second year of its Prospect Fellowship, a program that aims to help aspiring fund managers launch their own funds—seed money included.
The eight-week emerging manager program from Yale Investments, which oversees the university endowment, will support fellows with the resources and network of the endowment to help launch their funds.
Yale Investments will anchor fellows’ funds with a minimum $25 million commitment at launch, followed by a $25 million follow-on commitment. The university will additionally lend fellows $2 million in working capital to get their funds started.
“The Prospect Fellowship is the only place where aspiring fund managers can participate in a structured program with access to the unique resources Yale has to offer: our brand and track record, our rich history of backing successful firms, and our unparalleled investor network,” the Prospect Fellowship website states.
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Five fellows will be chosen for the program, spending multiple days at the beginning and the end of the program in New Haven, Connecticut, although fellows may elect to stay in the city full-time.
Yale will not take stakes in fellows’ funds, and it will not request revenue shares, but it seeks capacity rights and pro-rata co-investment rights from fellows.
Applications for the prospect fellowship will close at 11.59 pm EST on October 12.
“We back people, not track records. Yale Investments partners with the best, aligning ourselves with the most promising individuals on day one,” Yale’s announcement stated. “If you have a vision for investing, this is an ideal program for you to bet on yourself.”
The endowment of Yale University managed $41.4 billion in assets, as of June 30. The fund’s late CIO, David Swensen, is notable for being the father of the “Yale Model,” a strategy which sees high allocations to alternative investments, with the goal of generating strong long-term returns.
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Tags: Emerging Managers, Yale Investments
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