In October, Covariance Capital Management, a provider of outsourced endowment management services owned by TIAA-CREF brought on Kevin Nee as CEO. Last week, the firm also announced that it will be bringing Muthu Muthiah as senior investment manager – private markets.
Nee joined Covariance from Wilshire Private Markets where he managed approximately $5 billion in discretionary client assets across commingled funds and separate accounts in private markets. He was previously also managing director at BlackRock Alternative Advisors.
In his new role, Nee will be responsible for strategic leadership of the business, including new business development and day-to-day oversight of operations and finance. He will work directly with Scott Wise president and CIO. The CEO role is new and will “allow Scott to focus on investment strategy,” Nee tells Private Equity International.
Muthiah joins Covariance from Spider Management Company where he was an associate director of investments. Prior to Spider Management Company, Muthu was a Portfolio Manager at the Florida State Board of Administration, where he was part of a team which was responsible for private equity fund investments for the State of Florida’s $127 Billion retirement fund. In his new role, Muthiah will focus on private markets investments including private equity and real estate.
Covariance was launched in 2011 as part of TIAA-CREF and provides fully outsourced CIO functions including asset allocation, investment of capital, performance and risk reporting, as well as operational and accounting support related to investment services. “We’ve seen a real institutional need for these services, and more endowments are reaching out. It’s really a resource question, building these portfolios is a complex process that requires expertise, not every team is going to have all of that in-house. So it can make more sense to outsource,” Nee explains.
Covariance has more than 30 people on staff and plans to continue to building the team in response to demand and growth.