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What Is The Importance Of An Endowment?
An endowment is a long-term investment fund established to support an institution’s mission and various causes. Typically funded by donations, it is designed to generate sustainable returns that help finance scholarships, programs, research, or operations while preserving and growing the principal over time.
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Building and stewarding an endowment extends far beyond annual funding decisions—it requires a disciplined, long-term investment strategy aligned with the institution’s mission, spending policy, and risk tolerance. At NorthStar Capital, we partner with endowments to create dependable income for an organization while carefully managing risk and liquidity.
Our experienced team constructs diversified portfolios across equities and fixed-income securities using a proprietary, open-architecture framework, customizing each strategy to the endowment’s objectives and time horizon with the goal of delivering consistent, tax-aware returns that support a variety of opportunities for their organization.
How Does An Endowment Operate?
We'll help you build a dynamic investment portfolio designed to meet the needs and goals of your organization.
What you can expect:
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Access to a broad range of institutional-quality investment strategies designed to support an endowment’s objectives, including income generation, long-term growth, capital preservation, and liquidity management.
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Ongoing, customized insights into market conditions, asset allocation trends, and risk dynamics to support informed governance and investment decisions.
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Strategic guidance for complex portfolio considerations, including tax-aware structuring, risk mitigation and hedging strategies, and the management of concentrated positions.
Investment Options That Work For Your Organization:​
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Equities: Public company ownership used to drive long-term growth and help the endowment outpace inflation over time.
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ETFs: Cost-efficient vehicles providing diversified market exposure, often used for asset allocation and liquidity management.
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Fixed Income: Income-focused investments that support annual spending needs and reduce overall portfolio volatility.
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Buffered ETFs & Structured Notes: Tools designed to manage risk by providing defined downside protection and targeted return outcomes.
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Alternatives: Non-traditional assets, such as hedge funds and real estate, used to enhance diversification and improve risk-adjusted returns.
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Private Markets: Long-term investments in private equity, credit, and venture capital that can provide enhanced return potential for endowments with extended time horizons.
And so much more...
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Create, grow, and sustain an endowment for your organization by speaking with a NorthStar advisor today.
Key Considerations for Endowment Stewardship:​
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Is your endowment portfolio effectively balancing long-term growth, capital preservation, and consistent support for annual spending needs?
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Are you utilizing investment strategies designed to manage risk and volatility while aligning with the endowment’s mission, time horizon, and spending policy?
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How are tax considerations, regulatory requirements, and portfolio structure being managed to support the endowment’s overall efficiency and long-term sustainability?​
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And most importantly... Does your organization have an endowment? If not, we're here to help you take the first step.
