Stanford Management Company

Established in 1991, Stanford Management Company (SMC) is the office/department within Stanford University responsible for investing the University’s endowment and other long-term financial resources, collectively known as the Merged Pool. It is overseen by a Board of Directors appointed by the University Board of Trustees, and its staff are Stanford employees.

The Merged Pool is Stanford’s principal investment portfolio managed by SMC. It contains the majority of the University’s endowment, long-term funds from Stanford’s hospitals, and other funds treated as long-term investments. Some endowment assets (commercial lands and real estate near campus) are held outside the Merged Pool. As of June 30, 2025, the Merged Pool was valued at $47.7 billion.

SMC is led by Robert Wallace, who serves as Chief Executive Officer and Chief Investment Officer. He oversees a team of investment, operations, legal, IT, and administrative professionals. The office is also overseen by a Board of Directors appointed by the University Board of Trustees.

Composed of approximately 8,400 individual donor-established funds, the Endowment provides perpetual funding for student financial aid, faculty positions, research, the arts and humanities, healthcare innovations, and other academic priorities. It supports a significant portion of the University’s operating budget each year (e.g., $1.9 billion disbursed in FY2025, funding about 21% of expenses).

SMC pursues dual goals of supporting current University operations and preserving the Endowment’s purchasing power for future generations. This requires an equity-oriented, diversified portfolio capable of generating high long-term real returns while managing volatility and illiquidity. Asset classes include public equities, private equity, real assets, and absolute return strategies. Investments are guided by Stanford’s Ethical Investment Framework, adopted by the Trustees in 2018.