Franklin: Cambridge uses open-ended fund-of-one structures for real estate
Tilly Franklin · Tilly Franklin – Endowment Model at Cambridge University (EP.363) · Jan 22, 2024 · at 49:21
Tilly Franklin, CEO/CIO of University of Cambridge Investment Management, explains how the endowment invests in real estate using dedicated third-party manager vehicles.
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“What we've set up in a number of areas are a fund of one structure where we're still working with an expert third-party manager who But we're just the only investor in that vehicle, and the rationale for that has really just been that we're very long-term, and we don't want the manager to be forced by a sort of fund structure or a very onerous fee structure to be forced to take on too much risk and then have to sell assets at the wrong time, which is something we really observed in real estate going through the financial crisis. So these are open-ended vehicles.”
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