Kweku Obed Quoted on Emerging Managers, Endowments & Foundations

August 25, 2017

On August 23, investment consultant Kweku Obed was quoted in a FundFire article on the increasing use of emerging investment managers by endowments and foundations. Kweku commented that endowments and foundations are a logical next step for emerging managers, as the majority of their business comes from public funds, either through direct mandates or manager of managers’ portfolios, and they’ve had success there.

The article echoed points Kweku made in a recent paper on the attractiveness of diverse managers, and tackling challenges they face connecting with the broader institutional investor community. As many diverse managers don’t have the marketing bandwidth to connect with the right endowments and foundations, the solution often lies with plan sponsors and the investment manager search functions of investment consultants. FundFire reports that one endowment conducts diverse searches, has seen strong performance with their women-owned international equity managers, and has an eye on women-owned venture capital.

In his July 2017 Investment Perspectives newsletter, Don’t You Know, We’re Talking About An Evolution?, Kweku contributed to the industry conversation on the measurable benefits of incorporating “diverse” investment firms by exploring solutions to major headwinds. It is Marquette’s view that broader conversations about the diverse manager community should deliberately acknowledge the existence of newer structural headwinds that diverse managers face in today’s market. By focusing on these material hurdles — some of which are highlighted in the newsletter — the plan sponsor, diverse manager and consultant communities will be in a stronger position to formulate practical solutions to these challenges.

To read the article, visit the FundFire website (subscription required).