Investment Strategy
The William & Flora Hewlett Foundation is a major private foundation with approximately $13 billion in total assets. Founded in 1966 by Hewlett-Packard co-founder William Hewlett and his wife Flora, the foundation is headquartered in Menlo Park, California, and supports programs in education, environment, global development and population, performing arts, and effective philanthropy. Annual grantmaking exceeds $500 million.
The foundation’s endowment is managed with a diversified approach spanning public equities, fixed income, private equity, venture capital, real assets, and absolute return strategies. The investment portfolio targets a long-term real return rate designed to sustain grantmaking while maintaining the endowment’s purchasing power. The alternatives allocation represents a significant portion of the portfolio, reflecting the foundation’s long investment horizon and tolerance for illiquidity.
The Hewlett Foundation’s investment philosophy emphasizes broad diversification, disciplined rebalancing, and a long-term perspective. The foundation works with external investment managers across asset classes while maintaining internal oversight of asset allocation, risk management, and manager selection. The portfolio benefits from the foundation’s institutional stability and its ability to commit capital over extended time horizons, which provides access to illiquidity premiums in private markets.
Private Markets Approach
The Hewlett Foundation’s private markets program spans private equity, venture capital, and real assets. The foundation commits capital to both established fund managers and emerging managers, maintaining a portfolio that balances consistency of access with the potential for outsized returns from newer firms.
The foundation’s Silicon Valley heritage and geographic location give it natural connections to the venture capital and technology investment ecosystem. The foundation’s endowment has benefited from long-standing relationships with top-tier venture firms in the Bay Area, and the portfolio’s venture capital allocation reflects the institution’s comfort with early-stage investing and technology sector exposure.
In private equity, the foundation commits to buyout, growth equity, and special situations strategies across domestic and international markets. The real assets allocation includes real estate and natural resources investments, providing inflation protection and diversification relative to the equity-heavy portions of the portfolio.
The Hewlett Foundation publishes annual reports and its IRS Form 990-PF filings are publicly available, providing transparency into investment holdings and portfolio composition. Fund managers can review these filings to understand the foundation’s current manager relationships and identify potential areas of strategic fit. The foundation’s investment team evaluates new opportunities with attention to how prospective strategies complement existing portfolio exposures and contribute to the overall risk-return profile.
Frequently Asked Questions
How does the Hewlett Foundation allocate its endowment?
The William & Flora Hewlett Foundation manages a diversified portfolio of approximately $13 billion across public equities, fixed income, private equity, venture capital, real assets, and absolute return strategies. The foundation maintains a significant allocation to alternative investments, estimated at approximately 40% of the portfolio, reflecting the institution's long time horizon and ability to tolerate illiquidity. The investment strategy is designed to generate returns sufficient to support annual grantmaking while preserving the endowment's real value over time.
What is the Hewlett Foundation's approach to private equity and venture capital?
The Hewlett Foundation commits capital to private equity and venture capital strategies as part of its alternatives allocation. Based in Menlo Park, California, in the heart of Silicon Valley, the foundation has deep ties to the technology and venture capital ecosystem through its founders, William Hewlett and David Packard, who co-founded Hewlett-Packard. The foundation's venture capital investments benefit from this geographic and institutional proximity to the innovation economy, and the portfolio includes commitments to both established and emerging managers.
How can fund managers approach the Hewlett Foundation?
The Hewlett Foundation's investment team manages the endowment from Menlo Park with support from external investment consultants and managers. The foundation evaluates managers based on track record, strategy quality, team capabilities, and alignment with the portfolio's risk-return objectives. Given the foundation's Silicon Valley location and heritage, fund managers in technology-oriented venture capital and growth equity may find a natural affinity, though the portfolio invests broadly across asset classes and geographies. The foundation's 990-PF filings provide transparency into current holdings and commitments.
