Endowment Advisers Recommend $20M to Great Hill and $25M to Menlo Ventures

In a recent Virtual Investment Committee Meeting held by the University of Alabama System, key discussions centered around strategic investments aimed at fostering growth and ensuring robust returns for the university's endowment. The committee reviewed several investment opportunities, emphasizing a balanced approach to growth equity and venture capital.

One of the primary recommendations was to commit $20 million to Great Hill Equity Partners, a Boston-based firm known for its focus on growth equity investments in fast-growing businesses, particularly in technology. The committee acknowledged that while Great Hill's recent Fund 8 has underperformed, the firm's historical success with previous funds justifies continued investment. The committee expressed confidence in Great Hill's ability to rebound, citing their strong culture and commitment to excellence.

Additionally, the committee discussed a proposed investment of $15 million in Menlo Ventures, a Palo Alto firm with a long-standing reputation in venture capital. Menlo has a track record of backing successful companies like Uber and Roku, and the committee highlighted the importance of maintaining a presence in early-stage investments, which can yield significant returns despite their inherent risks.

The meeting also addressed a recommendation to invest $8 million in Atlas Ventures, focusing on life sciences and biotechnology. This investment reflects the committee's strategy to diversify its portfolio while capitalizing on the growing demand for innovative healthcare solutions, particularly in the wake of the COVID-19 pandemic.

Overall, the discussions underscored the committee's commitment to making informed investment decisions that not only aim for financial returns but also support the university's long-term goals. As the University of Alabama System continues to navigate the complexities of investment, these strategic commitments are poised to enhance the endowment's growth and stability, ultimately benefiting the broader community.