The Investment Fund for Foundations (TIFF) closed its first dedicated secondary fund, TIFF Secondary Partners I (TSP I), in early November with $150 million.
The fund will focus on private equity funds that the firm is already a primary investor in through its other funds, according to a statement on the firm’s Web site. TSP I will make secondary purchases in the interests of both buyout and venture capital funds in the U.S. and worldwide. The firm has closed on four primary private equity funds beginning in 1997 for a total of $616 million.
TIFF’s limited partners consist entirely of organizations that are not-for-profit. It has 23 limited partners for its new secondary fund. The firm declined to discuss the new fund or name any of its investors, but LPs in its past funds have included the American Red Cross, Ball Brothers Foundation, Bentley College, Brookings Institution, Carnegie Hero Fund Commission, Commonwealth Fund, Duke Endowment, Hershey Foundation, John D. and Catherine T. MacArthur Foundation, Mayo Foundation, National YMCA Fund, RAND Corporation, Texas A&M Foundation, and the Virginia Museum of Fine Arts Foundation. Securities and Exchange Commission documents note that of its 23 LPs, eight of them hail from the state of Virginia and invested more than $44 million, or almost one-third of the new fund.
In all, the firm has 400 limited partners that it refers to as members.
TIFF, a Charlotte, Va.-based non-profit organization, makes investments on behalf of foundations, endowments and endowed charities. Public and private pension funds and individuals are not allowed to invest. In addition to its private equity funds, the firm also invests in multi-asset funds, international and U.S. equity funds, government bonds, real estate and absolute return pool funds.
TIFF is also raising TIFF Partners V (TP V) for both U.S. and International investments and TIFF Real Estate Partners II. The firm expects to hold first closings on these new funds soon. TIFF Partners IV closed in January of 2001 with $250 million. TIFF Real Estate Partners I closed in June of 2001 with $107 million.
President and CEO David Salem founded TIFF in 1993. Prior to that, Salem was a partner with Boston investment advisor Grantham, Mayo, Van Otterloo & Co.