Schroders hires David Swensen

The investment chief at Yale University has been appointed at Schroders to boost the company's alternative asset management division.

Schroders has appointed David Swensen, Chief Investment Officer of the Yale University Endowment Fund, as a non-executive director.

The appointment is believed to form part of Schroders’ drive to increase its investments in private equity. About 25 per cent of Swensen's endowment funds at Yale, totalling more than $10bn, are invested in the asset class.

Schroder’s annual report stated a significant interest in alternative asset classes, which now totals 4 per cent of total funds under management. Financial News reports Schroders would like to increase alternative investments to around 10 per cent of total funds.

Swensen’s Yale funds are invested in venture capital and leveraged buyouts. Another chunk is invested in hedge funds. Yale also has investments in commodities such as timber, oil and property, plus emerging market funds.

Schroders announced its results on Friday 1 March. The results highlighted a £19.6m loss for Schroders private equity business, which it attributed to the fall in market value of the company’s 12.8 per cent holding in Schroder Ventures International Investment Trust.

Schroder recently completed the first closing of its E300m Schroder Private Equity Fund of Funds, raising E172m. The company hopes to complete final closing in mid-2002.