LP Types
Endowment
A perpetual pool of capital supporting a non-profit institution (typically a university or foundation), characterized by long horizons and high private markets allocations.
Endowments pioneered the institutional model of private markets investing, with leading programs allocating 30-50% to private equity, venture, and real assets. The combination of perpetual horizon, spending-rule discipline, and tax-exempt status makes private illiquidity a structural advantage rather than a constraint.
The operational reality is that endowment teams are small relative to allocation complexity. Institutional memory, GP relationship continuity, and disciplined pacing are the differentiators between top-quartile and median endowment performance.