Before COVID-19 most hospitals generated liquidity from their operating model. In our May 2020 survey of 27 hospital systems, we learned that COVID-19 has driven hospitals to search for liquidity from multiple sources, including, for some, the investment portfolio.
In a changing healthcare landscape, we understand the unique challenges and complexities facing healthcare systems today.
For more than 35 years, we have worked with healthcare-related institutions to build and manage investment portfolios customized to their needs.
We recognize that healthcare systems have unique objectives, constraints, and operating considerations that require them to invest their asset pools in a way that is significantly different from other institutional investors. To build a successful investment program, it is critical to fully understand the enterprise and how its varied pools—including endowments, pensions, insurance pools, working capital, and board-designated funds—work together to support it.
We start every relationship with a complete enterprise review to assess what drives the institution and understand the system’s ability to assume equity and illiquidity risk. We then build and manage a customized portfolio that is designed to best meet each client’s objectives.
With deep expertise in alternative assets, impact investing, and governance, we bring the needed resources to bear and deliver the portfolio that’s right for each client. Combined with our knowledge of enterprise issues specific to healthcare organizations, we help create customized investment programs to meet the specific values and objectives of the healthcare organizations we serve.
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Economic, market, and healthcare circumstances have been extraordinary over the last six months. However, attractive opportunities exist in some pockets of tech, relatively cheap public equities, and even in credit less supported by central bank activity. Additionally, the importance of investing in social equity has been brought into sharp relief by this crisis.
Do investors stand to gain more from a Trump victory or a Biden win in November’s US general election? Presidents often have a mix of market-friendly and market-unfriendly policies. Mitigating factors, such as a divided government, can offset market concerns or enthusiasm relating to one specific candidate’s policies. Investors should not tweak portfolios based on election prognostication.
In the first episode of our Reshaping Industry audio series, we tackle the evolving landscape of racial equity investing, particularly in the wake of George Floyd’s death, and talk key steps that institutional investors can take to achieve racial equity goals within their portfolios.
Nonprofit institutions have not been spared from the impact of COVID-19. In June 2020, when many endowed institutions were completing fiscal year 2020 and on the brink of a new fiscal year, we issued a survey that focused on endowment spending and other sources of liquidity for these institutions.
April 8, 2020—The COVID-19 pandemic has inflicted significant duress upon the operational and financial situations of nonprofit healthcare systems. An immediate response was necessary to escalate staffing, spending, and resources to provide emergency treatment to those affected by this highly contagious outbreak.
Healthcare systems can benefit greatly by maximizing equity orientation and illiquidity while prudently managing risk. But a typical healthcare system may have investment assets in multiple accounts, due to mergers & acquisitions (M&A), capital projects, and fundraising, as well as operational and pension benefit growth. Investments can be curated—identified, categorized, and clustered—for optimal efficiency and cost savings. Similarly, defined benefit pension plans can be restructured to better manage pension risk and administration. This paper discusses strategies to simplify and streamline investment structures to make complexity more manageable for investment and financial executives.