It’s Alive… Sequoia Capital’s Heritage Fund Returns

Sequoia Capital’s Heritage program has had more stops and starts than a game of Mother May I. Now it seems to be taking another giant step forward.

For the uninitiated, Sequoia Heritage is an outsourced investment management platform for college endowments and other small institutions. Private equities, private equities, fixed income, absolute returns and real estate. Kind of like a baby Makena Capital.

Actually, the Makena ties go deeper than just investment strategy. The original head of Sequoia Heritage was Eric Upin, former chief investment officer for Stanford University’s endowment. The founder of Makena is Mike McCaffrey, former CEO of Stanford Management Co. And just to circle back around, Upin left Sequoia early last year to join McCaffrey at Makena.

Got all that?

At the time, it appeared that Heritage would unravel before it ever had really begun. Hedge fund chief Michael Beckwith also resigned, the group failed to secure clients and I kept hearing that Sequoia was helping to find new work for private equity chief Dan Feder (formerly with Princeton’s endowment).

Fast forward to today, and Sequoia Heritage is back up and running. Feder now lists himself as an “advisor” on his LinkedIn account, but a recent regulatory filing indicates three active Heritage principals: 

  • Keith Johnson, chief investment officer, a former Stanford public equities manager who originally came over with Eric Upin in early 2008;
  • Jeff Bramel, managing director, a former principal with Oak Hill Investment Management who joined Sequoia last fall; and
  • Irwin Gross, managing director, a venture capitalist who joined Sequoia in late 2008 after nearly five years as a partner with Worldview Technology Partners.

Sequoia Heritage also is recruiting a real estate chief, according to an online job posting that reads, in part:

The Sequoia Capital Heritage Fund is organized as a team of generalists, each of whom offers specific expertise to the portfolio investment dialogue. We are seeking a Managing Director, Real Assets who will lead manager selection and oversight of the real estate and natural resources component of the portfolio, representing approximately 20-25% of the Fund. He/she is expected to collaboratively craft the Real Assets portfolio strategy and to source, evaluate, and recommend top-performing managers globally but to also be an informed participant in the other asset class discussions in the portfolio.

As a senior member and co-founding partner of the investment team, this individual will be expected to contribute to the formulation and execution of investment and asset allocation strategy for the Fund which will consist of a global portfolio of investments in public equity, fixed income, absolute return, real assets and private equity.

The regulatory filing, dated yesterday, does not indicate a target capitalization for Sequoia Heritage’s debut fund. It also does not report any secured capital commitments.

Past Coverage:
Sequoia’s Heritage Project: Not Dead Yet?
Sequoia Capital Loses “Hedge Fund” Manager
What is Sequoia Doing?
Dan Feder Leaving Princeton for Sequoia Capital
Sequoia Story Keeps Expanding
Sequoia Hires Stanford Investment Chief