Investment Strategy
Brigham Young University manages approximately $2.0 billion in endowment assets as of June 30, 2024, supporting one of the largest private universities in the United States. Located in Provo, Utah, BYU is owned and operated by The Church of Jesus Christ of Latter-day Saints and enrolls approximately 34,000 students. The university is known for its rigorous academics, strong business and engineering programs, and remarkably low tuition, which is subsidized by the Church. The endowment supplements church funding and tuition revenue, providing additional resources for scholarships, faculty recruitment, research, and campus development.
The investment strategy is overseen by university leadership and investment professionals who manage the endowment with a long-term orientation. The portfolio follows a diversified, multi-asset approach with approximately 35% allocated to alternative investments. Public equities, both domestic and international, form the core liquid allocation. Fixed income and cash reserves provide stability and ensure sufficient liquidity for annual distributions.
BYU’s investment philosophy emphasizes capital preservation and long-term growth, consistent with the university’s conservative institutional culture. The committee takes a total-return approach, seeking to maintain the endowment’s purchasing power while generating returns that support the university’s mission. Manager selection is grounded in fundamental analysis of track record, strategy quality, team stability, and alignment of interests.
The university’s connection to the Church provides institutional stability and a long-term perspective that aligns well with patient, illiquid investment strategies. BYU’s investment approach has become more sophisticated over time, with expanded alternatives allocations and deeper manager relationships as the endowment has grown.
Private Markets Approach
Private equity represents a core allocation within BYU’s alternatives portfolio. The PE program includes commitments to buyout and growth equity funds across multiple vintage years. Commitment pacing is managed to maintain consistent market exposure while balancing capital call obligations against the endowment’s liquidity needs.
Buyout allocations emphasize mid-market and upper mid-market managers with demonstrated operational value creation capabilities. The investment team evaluates GPs based on track record, team quality, sourcing advantages, and fund size discipline. Growth equity commitments target managers investing in established companies with strong growth profiles, particularly in technology, healthcare, and business services.
Real estate investments represent a significant component of BYU’s alternatives allocation. The university’s location in Utah, one of the fastest-growing states in the country, provides the investment team with regional perspective on real estate market dynamics. The portfolio includes fund investments across value-add and opportunistic strategies, diversified across geographies and property types.
Hedge fund allocations include long/short equity, event-driven, and multi-strategy approaches. These investments provide returns with lower correlation to public equity markets, reducing overall portfolio volatility and improving risk-adjusted performance.
BYU’s approach to private markets reflects a combination of institutional conservatism and growing sophistication. The investment team has built its private markets program steadily, expanding manager relationships and commitment pacing as the endowment has scaled. Co-investment opportunities are evaluated selectively alongside existing GP partners, with the team participating when conviction is high and economics are favorable. The endowment’s scale and long-term institutional stability make BYU an attractive LP partner for fund managers seeking committed, patient capital.
Frequently Asked Questions
How large is Brigham Young University's endowment?
Brigham Young University manages approximately $2.0 billion in endowment assets as of June 30, 2024. BYU is owned and operated by The Church of Jesus Christ of Latter-day Saints, and the endowment supplements church subsidies and low tuition in funding university operations. The endowment supports scholarships, faculty positions, research programs, and campus facilities.
How is BYU's endowment managed?
BYU's endowment is managed through a diversified investment strategy with approximately 35% allocated to alternative investments including private equity, real estate, and hedge funds. The university works with investment professionals and external managers to implement its portfolio strategy. BYU's connection to The Church of Jesus Christ of Latter-day Saints provides institutional stability, though the endowment operates as a distinct pool of assets dedicated to the university's academic mission.
What does BYU's endowment fund?
Endowment distributions support scholarships, endowed professorships, research programs, and campus infrastructure. BYU maintains exceptionally low tuition relative to its academic quality, in part because of church subsidies, and endowment returns help sustain this affordability. The endowment also supports BYU's global education programs and its extensive study abroad and internship offerings.
