The Barack Obama Foundation is ready to take its investment practice to the next level.
The foundation is looking to hire an outsourced chief investment officer provider to manage assets on its behalf, a request for information shows.
The foundation was launched in 2014 following President Barack Obama’s two terms in office. The foundation’s major project has been to build a presidential library. It also makes grants.
Foundations and endowments are increasingly turning to the outsourced CIO model as an option to have professional investment and governance management, without having to hire an in-house team. The model tends to be most effective for organizations that manage less than $2 billion, although it’s used across the industry.
According to its 2022 annual report, the Barack Obama Foundation has nearly $1 billion in assets under management, with just over one-tenth of that held in investments.
It is relatively large compared to other recent Presidents’ foundations. The George W. Bush Foundation manages $585 million, the George and Barbara Bush Foundation manages $101 million, and the Bill, Hillary & Chelsea Clinton Foundation manages $306 million.
The foundation wants to find an OCIO firm with “diverse and local representation” within the team. The Barack Obama Foundation is based in Chicago.
The nonprofit wants an OCIO provider that can help it with crafting “the endowment investment architecture, implementing board-approved principles and policies, and administering the endowment,” the request for information shows.
OCIO search firm Alpha Capital Management is running the request for information process.
