RWM Capital Asset Management won the open Endowment Fund tender of Russian State University for the Humanities (RSUH) for trust management of the formed endowment fund. The parties entered into the contract on trust management of the property constituting the endowment fund.
The tender consisted of two stages. At the first stage of the open tender companies had to prepare and deliver their commercial offers to the expert committee of the Endowment Fund. Then, at the roundtable conference participants, who had made it past the preliminary filter, made their presentations about their companies and defended their commercial offer. In aggregate 18 management companies selected based on the results of review of applications were allowed for participation in the roundtable conference.
Evaluation of commercial offers of management companies was carried out in accordance with the matrix scheme including such indices as ratings of independent agencies, experience in management and partnership with endowment funds (EF) of higher schools, details of commercial offers and availability of an interesting development strategy for the EF of RSUH.
“We are grateful to the expert committee of the Endowment Fund of RSUH for the confidence vested in us. - says Sergey Orlov, CEO of RWM Capital Asset Management. - Based upon leading positions in external rating, experience in management/partnership with EF of higher schools, details of commercial offer, availability of an interesting development strategy for the Endowment Fund of RSUH and cooperation in fundraising issues.
Endowment funds are a widespread form of capital management of cultural, scientific, medical and other institutions in all parts of the world. Such funds have very recently appeared in Russia, after adoption and coming into effect of the Federal Act “On Procedure of Raising and Use of the Endowment Fund of a Noncommercial Organization" at the end of 2006.
However, despite the legislative framework still being imperfect, and the fact that for many higher schools (mostly regional) the issue of attracting money to endowment funds raises many questions, it may be ascertained that the task of creating endowment funds in the higher education system is in the process of completion. The Russian endowment fund market is growing, new players appear.
Management of endowment funds of higher schools is a real opportunity to contribute to development of higher education in Russia and we would like to make out contribution to the global task of reorganization of the system of financing the activity of higher schools. In 2013 RWM Capital Asset Management performed its research of creation of endowment funds in Russian higher schools. The goal of the research was to determine the degree of interest and readiness of higher schools to form endowment funds and demand for such financial instruments in their practice. We questioned rectors of educational institutions included in the top-100 rating of Russian higher schools which had not registered their endowment fund by the time of the research.
Information thus obtained allowed us to better understand needs of higher schools, their readiness to look for alternative financing sources. Besides, based on the actual results of the research, we created a road map “17 Steps” by using which it is possible to prepare and launch the cycle of fundraising activity in a higher school.
Working with the Endowment Fund of RSUH, we intend to become active participants of the program of development and project financing of the university and to introduce innovative approach to various processes of its life.
Our strategy is focused on preserving and accumulation of endowment funds by means of investment of money in trusted assets with acceptable level of risk. We cooperate for the sake of the future. In addition to managing endowment funds, RWM Capital Asset Management is ready to allocate the required resources and to provide information, analysis and methodological support for the purpose of organization of the fund infrastructure including the issues of development of the fundraising system, organization of work with donors etc.
We are particularly proud of our victory as major management companies were among our competitors in the tender. Again we would like to express our gratitude to the Expert committee of the Fund for the confidence vested in us. We have a common goal – cooperation for the sake of the future. I am sure that our cooperation will be long-term and fruitful”.
