OSU Parking Deal Closing Tomorrow

The controversial (but in my opinion, wise) deal to lease OSU’s parking operations for the next 50 years is scheduled to close tomorrow.  The administration worked hard to bring the deal together and sell it to the Ohio State community.  Not everyone is convinced of the wisdom of the deal, but the difficult reality is that support from the state government is diminishing, and the university is going to have to be creative in finding ways to generate revenue (as an aside, OSU–like other universities–is still trying to figure out how to generate revenue from MOOCs facilitated by ventures like Coursera, which we just partnered with).

The parking lease nets OSU about $483 million.  Adding that to our roughly $2 billion-and-change endowment will move OSU up a few places in the ranking of university endowments market values.

For fun (and I acknowledge there are probably not many who think of this as “fun”), I made a chart showing the 5 largest university endowments and the 5 largest US state sovereign wealth funds (all figures in billions of dollars). 

 

 

 

Overall, there are a lot more universities with endowments in the billions than states with at least a billion  in AUM (only about 8 or 9).  However, note that state endowments (with the exception of the Texas PSF) are 1) younger, and 2) growing much more quickly since they are typically funded by oil and mineral extraction.  I expect that we will see a significant number of new state SWFs in this decade.

 

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