Harvard Buys into Gavea

Harvard Management Company (HMC), which manages the university’s $35bn endowment, has purchased a 12.5% stake in Rio de Janeiro-based Gavea Investimentos, marking a significant endorsement for Brazil’s highest profile hedge fund. HMC has been an investor in Gavea’s private equity funds for some years already and has had a relationship with a number of the firm’s partners, including founder Arminio Fraga. The 12.5% stake, whose value is undisclosed, makes HMC a partner in Gavea, but will not give it license to influence the investment strategy. Gavea manages $5.5bn across various strategies, including hedge funds and illiquid investments. The HMC capital injection will be invested directly into the fund, a Gavea partner tells LatinFinance. “For us, it’s a world class partner to have alongside us to help us continue to grow as an asset management firm,” says the executive. HMC is run by Robert Kaplan, formerly of Goldman Sachs, who took over as interim CEO following the premature departure of Mohamed El-Erian, who in September said he will return to PIMCO.