Key Takeaways
- • David Marcus, chief investment officer of Juilliard School's $1 billion endowment, is departing effective September 30, 2014, after leading the institution through financial crisis recovery since May 2008.
- • Marcus arrived at Juilliard immediately before the 2008 financial crisis and successfully navigated the endowment out of significant losses with support from board chairman Bruce Kovner, founder of hedge fund Caxton Associates.
- • Juilliard's investment committee comprises sophisticated Wall Street talent, including Chris Kojima and Kent Clark from Goldman Sachs Asset Management's alternative investments division, alongside hedge fund and wealth management professionals.
- • The departure of the CIO leaves a leadership vacuum at a premier arts institution with over $1 billion in assets managing only 850 students, representing an exceptionally large endowment-to-student ratio.
- • No successor has been named, and Marcus's next position remains undisclosed; neither Marcus nor Juilliard representatives commented on the circumstances of his departure.
Summary
Marcus assumed his post in May 2008, timing that placed him at the helm during the most acute phase of the financial crisis. Under his stewardship and with guidance from board chairman Bruce Kovner, the endowment recovered from substantial losses to rebuild its asset base. Kovner, who founded and operated hedge fund Caxton Associates from 1983 to 2011 and now operates through family office CAM Capital, has been a major donor to the school alongside his wife, Suzie. He assumed the board chairmanship in 2001 and continues to serve on the investment committee.
Juilliard's investment committee reflects deep institutional investment expertise, with members including Chris Kojima, who leads Goldman Sachs Asset Management's alternative investments and manager selection group; Kent Clark, Goldman's CIO for hedge fund strategies; Jim Marcus, a former Goldman partner; Sanford Ehrenkranz, co-founder of Ehrenkranz Partners wealth management; Keith Gollust, president of Gollust Management; and Kenneth Davidson, an advisor to hedge fund Balestra Capital. This composition underscores the sophisticated approach to endowment management at the institution.
The timing and circumstances of Marcus's departure remain unclear. Neither Marcus nor Juilliard's representatives provided comment on the departure or the search process for his successor. The absence of a named replacement and unclear transition details may present a governance consideration for stakeholders monitoring leadership continuity at major endowed institutions.
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