Key Takeaways
- • Harvard plans to invest an expected $300 million from its endowment in Evolution Credit Partners, a Boston-based direct lending firm, according to Bloomberg as cited by The Harvard Crimson.
- • Evolution Credit was founded by three former Harvard Management Company (HMC) credit specialists, including co-founder Rene Canezin, formerly head of fixed income, credit, and commodities at HMC.
- • Evolution Credit provides direct financing to U.S. private middle market companies with earnings between $15 million and $100 million, and finances buyouts, acquisitions, growth capital, and recapitalizations.
- • The investment comes as Harvard's $37.1 billion endowment, the largest university endowment in the world, has underperformed in recent years, and new HMC CEO N.P. "Narv" Narvekar is restructuring the management organization.
Summary
Harvard plans to invest an expected $300 million in Evolution Credit Partners, a direct lending firm started by three former Harvard Management Company credit specialists, Bloomberg reported on Tuesday. The capital will come from Harvard's endowment, according to Bloomberg. HMC spokesperson Patrick S. McKiernan declined to comment on the expected investment.
Evolution Credit finances buyouts, acquisitions, growth capital, and recapitalizations, and provides direct financing to private middle market companies in the U.S. with earnings between $15 million and $100 million, according to the firm's website. All three co-founders have strong ties to HMC. Rene Canezin previously served as head of fixed income, credit, and commodities at HMC. Mike Guarnieri, now a managing partner at the firm, worked as a specialist in the private credit business at HMC. Joe Lu, managing director and partner at Evolution Credit, also previously specialized in private credit at HMC.
The commitment comes as Harvard's endowment, valued at $37.1 billion, has underperformed in recent years. New HMC CEO N.P. "Narv" Narvekar is implementing structural changes in an effort to reverse that trend. Last January, Narvekar announced plans to cut HMC's 230-person staff by more than half, and he has cut around 100 jobs since joining HMC in late 2016. In February, HMC's real estate team officially became part of Boston-based private equity firm Bain Capital, finalizing a decision made late the previous year.
Evolution Credit finances buyouts, acquisitions, growth capital, and recapitalizations, and provides direct financing to private middle market companies in the U.S. with earnings between $15 million and $100 million, according to the firm's website. All three co-founders have strong ties to HMC. Rene Canezin previously served as head of fixed income, credit, and commodities at HMC. Mike Guarnieri, now a managing partner at the firm, worked as a specialist in the private credit business at HMC. Joe Lu, managing director and partner at Evolution Credit, also previously specialized in private credit at HMC.
The commitment comes as Harvard's endowment, valued at $37.1 billion, has underperformed in recent years. New HMC CEO N.P. "Narv" Narvekar is implementing structural changes in an effort to reverse that trend. Last January, Narvekar announced plans to cut HMC's 230-person staff by more than half, and he has cut around 100 jobs since joining HMC in late 2016. In February, HMC's real estate team officially became part of Boston-based private equity firm Bain Capital, finalizing a decision made late the previous year.
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