Bain Snaps up HMC’s Real Estate Team

Move is another step in HMC’s plan to work with more outside managers to boost returns.

Boston-based private equity firm Bain Capital is taking over the real estate business of Harvard Management Company. Effective February 1, 2018, the 20-person HMC real estate team will spin out of HMC and become Bain Capital employees.

Dan Cummings, an industry veteran and currently managing director and Head of Real Estate at HMC, will lead the team which he helped found in 2010. Cummings and the real estate team have reportedly been looking at options to move outside of the HMC umbrella for the past year, including starting an independent vehicle.

 Bain has approximately $85 billion in assets under management spread across several strategies, including credit, private equity, and venture capital.

 HMC manages Harvard University’s $37.1 billion endowment.

 By outsourcing its real estate practice to Bain, HMC takes another step toward working with outside teams on more of its portfolio strategy. The endowment, which has historically relied on internal teams to make direct investments and run strategy, is beginning to work with outside managers to improve returns.

 “On behalf of our team, I’d like to thank Harvard for their support over the past seven years, and their continued support,” Cummings said in a statement..

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