Key Takeaways
- • Matthew Mendelsohn '07 appointed Chief Investment Officer of Yale University's $31 billion endowment, succeeding David Swensen, who died in May 2021 after a nine-year battle with cancer. Mendelsohn assumes the role on September 1, 2021, following an international search conducted by a seven-member committee.
- • Mendelsohn's venture capital portfolio has delivered 21.6% annualized returns over the past decade, substantially outperforming the S&P 500 and relevant private equity benchmarks. Venture capital comprises more than 25% of Yale's total endowment allocation.
- • Internal promotion reflects confidence in continuity and deep expertise: Mendelsohn joined the Investments Office in 2007 as a protégé of Swensen and has managed Yale's venture capital, domestic and foreign equities, absolute return, and natural resources asset classes over 14 years.
- • New CIO will inherit legacy ESG mandate: Swensen issued a diversity demands letter to external managers in October 2020, requiring greater hiring of underrepresented employees—an initiative Mendelsohn will oversee as he leads the endowment.
Summary
Yale University has selected Matthew Mendelsohn '07, a 14-year veteran of the institution's Investments Office, to serve as Chief Investment Officer and steward of the nation's second-largest university endowment, valued at $31 billion. Mendelsohn succeeds David Swensen, the pioneering endowment manager who died in May 2021 following a prolonged illness. The appointment follows an international search conducted over the summer by a seven-member committee; Mendelsohn will assume his new position on September 1, 2021.
Mendelsohn's rise reflects a decision to promote from within rather than recruit an external successor. He joined Yale's Investments Office in 2007, where he worked directly under Swensen as one of his principal proteges. Since then, Mendelsohn has managed multiple asset classes across the endowment, including venture capital, domestic and foreign equities, absolute return strategies, and natural resources. Most significantly, he has overseen the endowment's venture capital portfolio, which accounts for more than 25% of total endowment assets.
The venture capital division under Mendelsohn's leadership has achieved exceptional performance, generating annualized returns of 21.6% over the past decade—a figure that substantially exceeds both broader stock market benchmarks and comparable private equity indices. Beyond investment management, Mendelsohn served as director of the Investments Office beginning in 2015 and co-taught an endowment management course at Yale's School of Management from 2013 to 2018, demonstrating both operational and educational leadership within the institution.
University President Peter Salovey characterized Mendelsohn in a statement to the Yale community, noting his "rare combination of qualities: extremely high talent, a superb work ethic, impeccable ethics, deep experience in the Yale Investments Office, a natural ability to lead, and strong personal ties to Yale dating back to his undergraduate days." As CIO, Mendelsohn will inherit not only the endowment management mandate but also initiatives begun by Swensen, including a 2020 diversity letter demanding that Yale's external investment managers hire more diverse employees—reflecting broader institutional pressure for ethical investing and workforce representation in the alternative asset management industry.
Mendelsohn's rise reflects a decision to promote from within rather than recruit an external successor. He joined Yale's Investments Office in 2007, where he worked directly under Swensen as one of his principal proteges. Since then, Mendelsohn has managed multiple asset classes across the endowment, including venture capital, domestic and foreign equities, absolute return strategies, and natural resources. Most significantly, he has overseen the endowment's venture capital portfolio, which accounts for more than 25% of total endowment assets.
The venture capital division under Mendelsohn's leadership has achieved exceptional performance, generating annualized returns of 21.6% over the past decade—a figure that substantially exceeds both broader stock market benchmarks and comparable private equity indices. Beyond investment management, Mendelsohn served as director of the Investments Office beginning in 2015 and co-taught an endowment management course at Yale's School of Management from 2013 to 2018, demonstrating both operational and educational leadership within the institution.
University President Peter Salovey characterized Mendelsohn in a statement to the Yale community, noting his "rare combination of qualities: extremely high talent, a superb work ethic, impeccable ethics, deep experience in the Yale Investments Office, a natural ability to lead, and strong personal ties to Yale dating back to his undergraduate days." As CIO, Mendelsohn will inherit not only the endowment management mandate but also initiatives begun by Swensen, including a 2020 diversity letter demanding that Yale's external investment managers hire more diverse employees—reflecting broader institutional pressure for ethical investing and workforce representation in the alternative asset management industry.
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