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Investment committee approves $20 million commitments to Khosla Ventures and Winrose Health fund
Summary
The University of Alabama System investment committee voted to authorize up to $20 million each for Khosla Ventures and Winrose Health Investors 7 LP for the Paulden Endowment Fund, following a presentation from Fund Evaluation Group on portfolio performance and private equity pacing.
Investment committee members of the University of Alabama System approved authorizations to commit up to $20,000,000 each to Khosla Ventures, LLC and Winrose Health Investors 7 LP for the Paulden Endowment Fund.
The action follows a presentation by Nolan Beam of Fund Evaluation Group, who reviewed recent market volatility and the system's portfolio performance before recommending the two private-equity commitments. Beam said the pooled endowment and liquidity and capital reserve pool “sat right around $6,600,000,000” in March and described private equity as the largest area where the portfolio remained short of its long-term target.
Beam told trustees the system is building toward a roughly 20–28% private-equity target and that the proposed commitments are part of a disciplined pacing plan. On the recommended venture allocation with Khosla, Beam said the system expects participation across three funds and offered an anticipated split: “roughly 40% in the seed fund, 40% in the flagship venture fund, and 20% in the opportunity,” subject to final placement and demand. He characterized the Winrose relationship as a buyout-focused health-care strategy that has produced top-quartile performance in prior vintages.
Dr. Dana Keith, senior vice chancellor for finance and administration, presented the formal resolutions to the committee, summarizing the recommendations as: for the Paulden Endowment Fund only, invest up to $20,000,000 in Khosla Ventures, LLC and up to $20,000,000 in Winrose Health Investors 7 LP. “Chairman Morissette, I recommend approval,” Dr. Keith said prior to the vote.
The committee moved to consider the two items collectively. With no further discussion recorded, the chair called for a vote and announced the resolutions were approved.
No purchaser-side contract text or closing dates were specified in the public committee record. The approvals authorize staff to proceed with committing capital within the limits stated and subject to customary documentation and fund terms.
Beam additionally noted that Fund Evaluation Group would host a University of Alabama student at an upcoming industry summit in Ohio as part of outreach and education efforts; he said applications came from nearly 50 universities nationwide.
Votes at a glance: the committee voted to approve the two resolutions (committee vote recorded as “aye”/“no” with the chair announcing the resolutions were approved; individual tally numbers or named yea/nay votes were not provided in the transcript).
Next steps: staff will proceed to finalize subscription documents and fund agreements consistent with the board-approved commitment amounts and the Paulden Endowment Fund’s investment policy.
