Mohamed El-Erian has left his post as chief executive officer of the Harvard Management Company, charged with managing the world's largest university endowment, to rejoin bond giant Pacific Investment Management Company.
Previously a senior member of the company's portfolio management team, El-Erian will help PIMCO break into the alternative investments space as its co-chief executive officer and co-chief investment officer.
Harvard has not yet named a successor to El-Erian, who joined HMC in October 2005. The $35 billion (€25 billion) endowment returned 23 percent for the fiscal year ended 30 June, which was El-Erian’s first full fiscal year there.
HMC has invested in private equity since 1982. It currently allocates 13 percent of its assets to private equity, and 43 percent to alternative investments. HMC has committed to at least 100 funds, including funds managed by Apollo Advisors, Clayton Dubilier & Rice, DLJ Merchant Banking, Kleiner Perkins Caufield & Byers, Kohlberg Kravis Roberts, Oak Investment Partners, Providence Equity Partners, Sequoia Capital, Thomas H. Lee and Warburg Pincus.
Newport Beach, California-based PIMCO has more than $693 billion in assets under management. It is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group.