Black Enterprise – Investors looking to be “advisory clients” of Morgan Creek Capital Management will have to pony up $200 million as an initial investment, following a recent decision at thefirm.
Morgan Creek currently manages investments for eight such advisory clients, who retain discretion for all allocation decisions while the firm acts as an outsourced chief investment officer, and makesrecommendations as to asset allocation, manager selection and customized portfolio construction. Morgan Creek oversees approximately $1 billion in such assets.
According to the firm, the minimum investment level was ratcheted up because achieving true customization required larger dollar amounts to meet the minimum investments of individual managers. Ahigher minimum investment will also serve to harness the growth of the advisory client category; the firm plans on having no more than 15 to 20 advisory clients.
Morgan Creek launched in 2004 when its president and chief investment officer, Mark Yusko, was still managing the assets of the University of North Carolina at Chapel Hill. The firm’s Endowment Fund,which replicates the UNC portfolio that Mr. Yusko ran, has approximately $750 million in assets.
