Key Takeaways
- • The John S. and James L. Knight Foundation is rebuilding an in-house investment office for its roughly $2.6 billion portfolio, its first internal team since outsourcing to Cambridge Associates in 2005.
- • Rebecca Carland has been hired as chief investment officer and Shanna Charles as director of investment operations, both former private family office professionals, with investment directors for private investments also being sought.
- • Kevin Stephenson, who managed the portfolio at Cambridge from 2005 to 2019, was named to the foundation's board in March.
- • Knight CEO Maribel Pérez Wadsworth said in-house management provides "greater strategic flexibility"; the foundation did not disclose specific portfolio rebalancing plans.
- • Industry commentators describe the move as uncommon, since roughly 90 percent of private foundations use the OCIO model, and note that in-house teams typically require scale.
Summary
The John S. and James L. Knight Foundation is assembling a new internal investment team to manage its portfolio, which Institutional Investor reports stands at $2.6 billion as of 2023. The move ends a period of outsourcing that began in 2005, when the foundation handed its then just under $2 billion portfolio to Cambridge Associates after its former CIO, Timothy Crowe, retired to start his own asset manager. According to the report, Crowe had delivered strong returns, outperforming the S&P 500 with lower volatility, but the board rejected his proposal for his new firm to continue managing the assets and instead hired Cambridge.
To lead the rebuilt office, Knight has hired Rebecca Carland as chief investment officer and Shanna Charles as director of investment operations. Carland previously served as CIO at Builders Vision, an impact-focused family office, and held senior roles at the Walton family office and Cambridge. Charles was senior manager of investment operations at an ultra-high-net-worth family office and spent five years at Cambridge, where she worked on Knight's portfolio during Stephenson's tenure. The foundation is also seeking investment directors to cover private investments. Carland will oversee long-term growth and sustainability strategy.
Knight CEO Maribel Pérez Wadsworth said the in-house model allows the foundation "to manage our assets with greater strategic flexibility, ensuring that we continue to support Knight's mission in perpetuity." A spokesperson said the board chose an internal model to keep investments aligned with strategic priorities, though no specifics on portfolio rebalancing were provided. Representatives from Cambridge declined to comment.
Institutional Investor notes the decision is uncommon, since most private foundations, about 90 percent, use outsourced chief investment officer (OCIO) arrangements. Jim Scheinberg of North Pier Search Consulting told II that "it's hard to justify an investment office for less than $5 billion." Brian Neale, CIO of the University of Nebraska Foundation's $2 billion endowment, and Dennis Simmons, executive director of the Committee on Investment of Employee Benefit Assets, argued that internal teams can better manage donor and board relationships and align investments with stakeholder values, with Simmons noting the foundation remains the fiduciary regardless of structure.
To lead the rebuilt office, Knight has hired Rebecca Carland as chief investment officer and Shanna Charles as director of investment operations. Carland previously served as CIO at Builders Vision, an impact-focused family office, and held senior roles at the Walton family office and Cambridge. Charles was senior manager of investment operations at an ultra-high-net-worth family office and spent five years at Cambridge, where she worked on Knight's portfolio during Stephenson's tenure. The foundation is also seeking investment directors to cover private investments. Carland will oversee long-term growth and sustainability strategy.
Knight CEO Maribel Pérez Wadsworth said the in-house model allows the foundation "to manage our assets with greater strategic flexibility, ensuring that we continue to support Knight's mission in perpetuity." A spokesperson said the board chose an internal model to keep investments aligned with strategic priorities, though no specifics on portfolio rebalancing were provided. Representatives from Cambridge declined to comment.
Institutional Investor notes the decision is uncommon, since most private foundations, about 90 percent, use outsourced chief investment officer (OCIO) arrangements. Jim Scheinberg of North Pier Search Consulting told II that "it's hard to justify an investment office for less than $5 billion." Brian Neale, CIO of the University of Nebraska Foundation's $2 billion endowment, and Dennis Simmons, executive director of the Committee on Investment of Employee Benefit Assets, argued that internal teams can better manage donor and board relationships and align investments with stakeholder values, with Simmons noting the foundation remains the fiduciary regardless of structure.
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