Wise leaves Rice for TIAA-CREF

By Seth Brown     7/29/10 7:00pm

After 35 years at Rice - four as a student, and another 31 in a number of roles culminating in his appointment as the first president of the Rice Management Company, Scott Wise (Will Rice '71) left Rice June 21.Wise left to become chief investment officer for a new TIAA-CREF endowment and foundation management company.

Rice Management Company Vice President Ron Long, who is standing as Wise's replacement until a permanent selection is made, said Wise's legacy includes the diversification of the endowment, the increase in number of endowment managers and the development of a professional supervisory staff.

"In 1989, when Wise became treasurer, the endowment had one manager - now it has over 100," Long, who is also Rice's associate vice president for investment and associate treasurer, said. "He has diversified the endowment away from one single manager, and supervises the staff as we review manager candidates."

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After graduating from Rice, Wise received a master's degree in accounting from the University of Texas at Austin in 1973 and worked as the audit manager for Arthur Andersen and Company from 1977 until 1979, when he joined the university as comptroller. He became associate vice president for financial affairs and associate treasurer in 1986, was named vice president for investments and treasurer in 1989 and in October 2009 became president of the Rice Management Company at its inception.

Long said that Wise's departure after only eight months of heading the Rice Management Company was the result of an opportunity offered to him after working at Rice for 31 years. The role Wise played as the Rice Management Company president was essentially the same as the one he had fulfilled for the previous 20 years, Long said.

This role included selecting outside managers among whom to divide the endowment and then reviewing their progress, as well as hiring and training staff members as the number of managers grew.

In 1989, the endowment stood at $990 million; it then reached a peak at the end of fiscal year 2007 with $4.6 billion and now stands at approximately $3.9 billion, Long said. According to Long, this figure represents an 11 percent average annual return on investment over the 20-year period, with $2.8 billion distributed to the university over the same time period in accordance with the budget. In comparison, gifts to the endowment average approximately 1 percent of the endowment's total each year, Long said.

Wise's replacement is being selected by a search committee whose members will remain secret until the search has been completed in order to maintain the integrity of the search, Long said.

Board of Trustees Chair Jim Crownover said any potential replacement will need an understanding of what it is like to be associated with a university.

"[The replacement] has to fit very well with Rice University, [has to be] someone who can instruct and lead people," Crownover said.

Long said that he does not foresee any major changes in the future of how the endowment is managed, regardless of who is selected to replace Wise.

"There's the analogy of a big ship on a long journey - it doesn't change course quickly," Long said. "There's no perceived need to change course - no reason to make any corrections. I don't think the operations are going to be noticeably different."

Crownover said that the structure established by Wise will be able to operate well even without his presence.

"He leaves behind a legacy that will endure - no one will change it," Crownover said. "He led the development of the management of the Rice endowment from almost its infancy to where it is today - among the best managed endowments in the country.

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