Investment Strategy
The University of Notre Dame endowment, valued at approximately $20.3 billion as of June 30, 2024, is one of the ten largest university endowments in the United States. The endowment is managed by the Notre Dame Investment Office, which oversees asset allocation, manager selection, and portfolio risk management for the university.
Notre Dame’s investment philosophy has been shaped by decades of commitment to alternative asset classes and long-term GP relationships. The endowment’s approach bears resemblance to the Yale Model, emphasizing significant allocations to private equity, venture capital, real estate, natural resources, and absolute return strategies. Approximately 58% of the endowment is allocated to alternatives, well above the average for U.S. university endowments.
The endowment’s growth trajectory has been remarkable. Under the leadership of Scott Malpass, who served as Chief Investment Officer from 1989 to 2020, the endowment grew from approximately $425 million to over $18 billion. Malpass built a world-class investment program by cultivating deep relationships with top-tier managers and maintaining discipline around asset allocation. The current Investment Office continues this approach under subsequent leadership.
Notre Dame’s endowment distributes approximately 5% of its value annually to support university operations, including financial aid, faculty support, research, and campus facilities. The endowment is the largest single source of revenue for the university.
Private Markets Approach
Notre Dame’s private markets program is a cornerstone of the endowment’s investment strategy. The portfolio spans private equity, venture capital, real estate, and natural resources, with each asset class managed through carefully selected GP relationships.
In private equity, Notre Dame commits to buyout and growth equity managers across a range of fund sizes. The Investment Office has historically favored managers with operational value creation capabilities, disciplined capital deployment, and a track record of generating consistent returns independent of leverage or market conditions. Notre Dame’s buyout commitments include both large-cap and mid-market strategies.
The venture capital allocation has been a meaningful contributor to the endowment’s long-term performance. Notre Dame has built relationships with established venture franchises and has selectively backed emerging managers with differentiated sector expertise or geographic focus. The endowment’s VC program targets managers with strong networks and a demonstrated ability to identify high-potential companies at early stages.
Real estate investments encompass core, value-add, and opportunistic strategies across domestic and international markets. Notre Dame’s real estate portfolio is managed through commingled funds and, in some cases, co-investment opportunities alongside GP partners.
Natural resources allocations provide inflation hedging and portfolio diversification. The endowment has historically maintained exposure to energy, timber, and agriculture through specialized fund managers.
Absolute return strategies, including hedge fund allocations, serve as portfolio diversifiers and sources of uncorrelated returns. Notre Dame’s absolute return program targets managers with clearly defined investment processes and genuine alpha generation capabilities.
For fund managers seeking to engage with the Notre Dame Investment Office, the bar is high. The team maintains a concentrated GP roster and prioritizes long-term partnerships over transactional relationships. The most effective path to consideration involves referrals from existing partners, recognition within institutional investor circles, and a track record that stands out across market cycles.
Frequently Asked Questions
How has the Notre Dame endowment performed historically?
The Notre Dame endowment has been one of the top-performing university endowments in the United States over the past two decades, consistently ranking among the best performers in the NACUBO endowment survey. The endowment has achieved strong long-term annualized returns, driven by a heavy allocation to alternative investments and long-standing relationships with top-tier fund managers. The endowment grew from approximately $3 billion in the early 2000s to over $20 billion by 2024.
What is Notre Dame's approach to private equity and venture capital?
Notre Dame allocates a significant portion of its endowment to private equity and venture capital, reflecting the university's long time horizon and tolerance for illiquidity. The Investment Office maintains established relationships with leading buyout, growth equity, and venture capital managers. Notre Dame has historically favored concentrated GP portfolios with high-conviction commitments to managers demonstrating consistent performance and strong alignment of interests.
How does the Notre Dame Investment Office evaluate new fund managers?
The Notre Dame Investment Office is highly selective in adding new GP relationships. The team evaluates managers on the basis of strategy differentiation, team quality and stability, track record consistency, and alignment of interests. Notre Dame values deep, long-term partnerships and does not frequently rotate its manager roster. Referrals from existing GP partners and demonstrated exceptional performance are the most common paths to gaining consideration from the Investment Office.
