July 31, 2007
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS MEETING
| Members Present: | |
|
Leroy L. Hermes, Chair
Michael J. Cemo, Vice Chair Calvin W. Stephens, Secretary Morgan Dunn O’Connor Welcome W. Wilson, Sr. Jim P. Wise |
The University of Houston System Board of Regents meeting convened in Room 220 E. Cullen, University of Houston, on Tuesday, July 31, 2007. Noting the presence of a quorum of the Board, Chairman Hermes called the meeting to order at 2:06 p.m. and recessed for the Endowment Management Committee meeting. Chairman Hermes then turned the meeting over to Regent Cemo.
Regent Cemo called the Endowment Management Committee meeting to order at 2:06 p.m. Regent Cemo stated he would like to move forward with identifying 1-4 outside advisors for the Endowment Management Committee. The Committee members agreed with Regent Cemo’s stated course of action.
Regent Cemo also stated approval is requested to assess the UH System Endowment at the rate of 1.5% effective for FY08 spending. Regent Cemo then called on Mr. Rierson, who gave a brief overview of the endowment. Mr. Rierson stated that the FY07 assessment provided $3.2 million in new funding. $2.9 million was committed toward 32 new positions and $300K for operations. He stated that to date they have hired 20 of 32 positions and have seven active searches currently underway. Any increased revenue for FY08 would be used for marketing a new chancellor/president and any new major university initiatives.
Regent Cemo thanked Mr. Rierson for his efforts and turned the meeting over to Mr. McShan, who presented Item C, Transfer of a Quasi Endowment Funds to Support Scholarship Awards – UH System. Mr. McShan stated that this fund was created in 1990. Approval is requested to transfer an amount, not to exceed $45,000, from the Delphian Quasi Endowment to subsidize Delphian scholarship awards to students during the 2007-2008 academic year. This request is expected to be a one-time event as Mr. Rierson agreed to work with the Delphians regarding this matter. Regent Cemo moved to approve the item as presented. The committee unanimously approved the item as presented.
Regent Cemo then turned the meeting over to Mr. Hamilton Lee, from Cambridge Associates, who gave an overview of the capital markets, performance and asset allocation of the endowment fund. Mr. Hamilton also reported to the Committee on the minimal exposure the endowment fund has to the sub-prime lending sector. Mr. Hamilton provided an overview of the System’s non-endowed investments. Copies of this material are on file in the Board office.
Gary Petersen, Partner, and Doug Swanson, Managing Director of EnCap Investments gave a presentation of their private equity fund, EnCap Energy Capital Fund VII. A copy of their material is on file in the Board office.
Regent Cemo moved approval of the items as presented. Regent O’Connor seconded the motion, which passed unanimously. The Committee will present for board approval the Appointment of Endowment Investment Manager [EnCap Energy Capital Fund VII] at the August 16, 2007 Board meeting.
Regent Cemo called on Jim McShan to provide an update to the Committee on the investment consultant search. Jim McShan stated that staff was evaluating the responses to the RFP.
There being no further business to come before the committee, the meeting adjourned at 4:20 p.m.
After hearing the Endowment Management Committee report, Regent Hermes convened to a full board meeting.
In absence of further business, the board adjourned at 4:21 p.m.
All documentation submitted to the Board in support of the foregoing action items, including but not limited to “Passed” agenda items and supporting documentation presented to the Board, is incorporated herein and made a part of these minutes for all purposes; however, this does not constitute a waiver of any privileges contained herein.
| Others Present: | |
|
John M. Rudley
Donald Foss Jim McShan Dona Hamilton Michael Rierson Raymond Bartlett |
Eli Cipriano
Michelle Sabino Hamilton Lee Janis Newman Gerry Mathisen |
