The Investment Fund for Foundations (TIFF), a Charlotte, Va.-based non-profit organization that makes investments on behalf of foundations, endowments and endowed charities, has closed its first dedicated secondary fund. TIFF Secondary Partners I (TSP I) closed in early November with $150 million.
According to a statement on the firm’s Web site, the fund’s primary focus will be on private equity funds that the firm is already a primary investor in through its other private equity funds. TSP I will make secondary purchases in the interests of both buyout and venture capital funds 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 a total of 23 limited partners for its new secondary fund. While the firm declined to discuss the new fund or name any of its limited partners, 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 Corp., 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 approximately 29% of the fund.
In all, the firm has 400 limited partners that it refers to as members. Its most active LPs appear to be those closest to home. 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, which are both close to holding first closes. TIFF Partners IV closed in January of 2001 with $250 million, while TIFF Real Estate Partners I closed in June of 2001 with $107 million.
David Salem, who serves as president and chief executive officer, founded TIFF in 1993. Prior to starting TIFF, Salem was a partner with Boston investment advisor Grantham, Mayo, Van Otterloo & Co. The firm is headquartered in Charlottesville, Va. and has offices in London; Bethesda, Md.; Hanover, N.H.; San Francisco, and in the New York City area.
Active Funds: TIFF Secondary Partners I; TIFF Real Estate PArtners II; TIFF Partners V.