Investment Strategy
The Ohio State University endowment, valued at approximately $7.3 billion as of June 30, 2024, supports one of the largest and most comprehensive public universities in the United States. The endowment is managed by the university’s Office of the Chief Investment Officer, which oversees asset allocation, manager selection, and portfolio risk management.
Ohio State’s investment philosophy emphasizes broad diversification across asset classes with a meaningful allocation to alternative investments. Approximately 45% of the endowment is allocated to alternatives, including private equity, venture capital, real estate, natural resources, and absolute return strategies. The remainder is invested in public equities, fixed income, and other liquid asset classes.
The endowment targets long-term real returns that exceed the university’s spending rate, preserving purchasing power across generations. Annual distributions from the endowment support the university’s academic mission across its many colleges and programs, funding scholarships, endowed professorships, research programs, and campus infrastructure.
Ohio State has been growing its endowment through both investment returns and an active philanthropic program. The university’s large and engaged alumni base has been a significant source of endowment contributions, and the investment office has worked to improve long-term returns through increased alternatives exposure and disciplined manager selection.
Private Markets Approach
Ohio State’s private markets program spans private equity, venture capital, real estate, and natural resources. The endowment has built a growing alternatives portfolio with established GP relationships across multiple strategies.
In private equity, Ohio State commits to buyout and growth equity managers across a range of fund sizes. The investment office evaluates GPs on sourcing capabilities, operational value creation, and consistency of returns. The endowment’s private equity portfolio includes commitments to both large-cap and mid-market managers.
The venture capital allocation targets managers with access to high-quality early-stage deal flow and a demonstrated ability to identify high-growth companies. Ohio State’s growing innovation and technology transfer ecosystem provides additional context for the endowment’s interest in venture capital.
Real estate investments include core, value-add, and opportunistic strategies. The endowment seeks managers with disciplined underwriting and active asset management capabilities across property types and geographies.
Natural resources provide inflation hedging and portfolio diversification through exposure to energy, agriculture, timber, and other commodity-linked investments.
Absolute return strategies serve as portfolio diversifiers, with the investment office selecting hedge fund managers whose strategies generate returns with low correlation to public markets.
For fund managers seeking to work with Ohio State’s investment office, the organization values long-term GP partnerships and evaluates managers on strategy differentiation, team quality, alignment of interests, and performance consistency. The endowment’s scale and growing alternatives program make it a relevant LP for both established and emerging managers. Referrals from existing partners and the institutional investor community are effective channels for new manager consideration.
Frequently Asked Questions
How large is the Ohio State endowment?
The Ohio State University endowment stands at approximately $7.3 billion as of June 30, 2024, making it one of the largest public university endowments in the United States. The endowment comprises thousands of individual funds supporting a wide range of purposes across the university's colleges and programs. Annual distributions provide hundreds of millions of dollars for scholarships, faculty support, research, and campus operations.
What is Ohio State's approach to alternative investments?
Ohio State allocates approximately 45% of its endowment to alternative investments, including private equity, venture capital, real estate, natural resources, and absolute return strategies. The university follows a diversified investment approach that balances illiquid alternatives with public market exposures, targeting long-term real returns while managing liquidity requirements and portfolio risk.
How does Ohio State evaluate new fund managers?
The university's investment office evaluates new managers based on strategy differentiation, team depth and stability, alignment of interests with LPs, and consistency of track record across market cycles. Ohio State maintains a selective approach to GP relationships and values long-term partnerships with managers who demonstrate disciplined investment processes. Referrals from existing partners and the institutional investor network are common paths to consideration.
