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Historically black colleges and universities (HBCU) in the U.S. are prioritizing the growth of their endowment and looking to work with minority-owned asset management firms.

According to a study conducted by the U.S. Government Accountability Office, the median endowment size at non-HBCUs is $23 million while only $12 million at HBCUs. At Morehouse College in Atlanta, Georgia, President David A. Thomas plans to double the alumni donation rate to 34% and to grow endowment to $400 million. To do this, Thomas has hired Monique Dozier to revamp the college’s fundraising strategies, lay the foundation for a capital-raising campaign and increase overall donations.

The endowment of Spelman College in Atlanta is collaboratively managed by its investment consultant Cambridge Associates and an in-house team headed by Robert “Danny” Flanigan Jr. who also serves as the college’s treasurer, vice president for business and financial affairs and chief financial officer. According to Spelman president Mary Schmidt Campbell, their endowment has reached almost $390 million “over several decades.” Almost 18% of the college’s net asset value is invested with diverse managers.

The investment office of Howard University in Washington D.C. is seeking minority-owned asset managers with capabilities to meet the university’s investment goals as well. The university believes that minority managers can help add value to their endowment program.

As of December 31, 2018, 10% of endowment assets in America are managed by minority firms.