Rice Management Company (RMC)
Rice Management Company’s (RMC) endowment assets under management, which exclude directly held real estate, returned 9.7% for the fiscal year that ended June 30, 2024, with a value of $7.5 billion as of the same date. The total endowment value, which includes directly held real estate managed outside of RMC, ended the year at $8.1 billion. The endowment plays a vital role, as distributions provide approximately 40% of the University’s operating revenues, which makes it the single largest revenue source to the operating budget. The endowment employs an actively managed investment strategy. We partner with third-party investment managers and internally manage a portfolio of oil and gas royalties, timberland, and operating businesses.
Rice Divestment Statement:
Rice University’s endowment seeks to provide sufficient, stable, and growing cash distributions to support the core endeavors of the University which include path-breaking research, unsurpassed teaching, and access for students regardless of ability to pay. The endowment, through Rice Management Company, plays a vital role as the single largest revenue source to the University’s operating budget.
The Rice Management Company Board of Directors has a fiduciary responsibility to act in the best interests of the University which requires maximizing the University’s resources to ensure continued academic excellence and intergenerational equity for its students.
Consistent with its longstanding approach, the endowment maintains a highly diversified and actively managed investment portfolio with the primary objective of maximizing returns while managing risk. This includes prioritizing financial outcomes of investment decisions and precludes the use of endowment funds to support political or social positions held by members of the community.
Moreover, the endowment is primarily invested through third-party investment managers and funds. Divestment mandates restrict the endowment’s access to top performing investment managers, impeding the endowment’s ability to generate the returns necessary to support the University and the Board’s fiduciary obligations.