HMC Spins Out $3.4B Real Estate Team To Bain Capital

Dec 15 2017 | 11:35pm ET

The 20-person real estate team at Harvard University’s $37 billion endowment will reportedly spin out and become part of a new Bain Capital real estate investment group formed to bring the group aboard.

The move will be effective February 1, 2018, according to a statement from Bain Capital on Friday, after which the group will be Bain employees. It will continue to be led by Dan Cummings, currently head of real estate at Harvard Management Company. The team, which has invested more than $3.4 billion of equity in its direct real estate investment strategy since inception in 2010, will continue to manage HMC’s direct real estate investment portfolio from within Bain, the statement added, and HMC will continue to invest in the team’s future strategies.

The addition of a dedicated real estate team will benefit Bain’s global distressed and special situations portfolio and the company’s consumer, hospitality and retail portfolio private equity portfolio. HMC’s real estate team reportedly began exploring outside options a year ago, including launching an independent vehicle. 

The move is the latest step by the world’s largest university endowment to restructure operations under new CEO Narv Narvekar after several years of underperformance relative to its peers. HMC has long relied on direct investments by in-house teams such as the real estate group instead of the more common practice of relying on outside fund managers to build specific portfolio exposures.

Based in Boston and founded in 1984 by former U.S. presidential candidate and governor of Massachusetts Mitt Romney with partners from consulting firm Bain & Co., Bain Capital is one of Wall Street’s largest remaining closely-held partnerships. The company manages approximately $85 billion across private equity, venture capital, credit and public equity strategies. 

In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...