Endowment Report 2023

ENDOWMENT REPORT 2023

TABLE OF CONTENTS The Seattle University Endowment

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Expanding Opportunities

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Michelle, ’98 MBA and Matt Galvin

Rogel Professorship

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Legacy for the Future

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D’Vonne Pickett Jr., ’14

Highlights & Performance

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Endowment Management

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Investment Committee

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MESSAGE from the PRESIDENT

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hank you for investing in Seattle University’s mission with your gifts to endowments supporting our students, faculty, programs and centers across campus. I am pleased to share this report on the Seattle University Endowment’s performance during the 2022-2023 fiscal year and the impact of your giving.

With your support, we can deliver on our mission to prepare values-centered leaders through a rigorous academic curriculum rooted in Ignatian pedagogy and delivered by our talented faculty.

In the years ahead, your gifts will be the foundation upon which we will continue to build the Seattle University Endowment so that we may further our mission-aligned growth and strengthen our commitment to our students, faculty, staff and alumni—making good on the ambitious goals we have set forth in the university’s 2022-2027 Reigniting Our Strategic Directions.

I am grateful for all the ways in which you support our students and Seattle University’s commitment to be a Jesuit university of distinction for a time of change.

Warm regards,

Eduardo Peñalver President, Seattle University

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THE SEATTLE UNIVERSITY ENDOWMENT Endowments at Seattle University create a permanent legacy of support that strengthens our financial foundation and our commitment to care for the whole person. The 540 individual endowment funds that comprise the Seattle University Endowment provide essential and permanent support that enables Seattle U to maintain a competitive edge in attracting exceptional students and faculty, provide greater access to a Jesuit education and offer our schools and colleges the opportunity to innovate and grow with new programs, initiatives, technology, research and more.

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“Receiving an endowed scholarship has had a profound impact on my education at Seattle University. It has significantly lessened the financial burden my family and I were facing, providing much-needed relief from the constant worry of making ends meet and covering my tuition expenses. This financial support has not only allowed me to continue my MBA program but has also enabled me to participate in extracurricular activities and networking opportunities.”

ANDRES PENA, ‘23

Geisen Family Graduate Business Endowed Scholarship Major: PMBA

$13.9 million

In FY 2023, distributions totaling $13.9 million from the Seattle University Endowment provided critical support to key university priorities and to colleges, schools and initiatives across campus.

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THE GIFT OF EXPANDING OPPORTUNITIES Michelle, ’98 MBA, and Matt Galvin, co-owners of Pagliacci Pizza, create a new scholarship endowment for Rainier Scholars at SU.

By TINA POTTERF

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ichelle and Matt Galvin are big proponents of giving back to their community in ways that support access to higher education—and setting up future success—for underrepresented youth.

Co-owners, along with Patrick McDonald, of Pagliacci Pizza, the Galvins are passionate about disrupting the school-to-prison pipeline and abolishing barriers that limit opportunities for those seeking to go to college.

Recently they established a scholarship endowed by Pagliacci Pizza benefiting the Rainier Scholars program.

This is the second endowment for the Galvins and Pagliacci—the first was created in the Albers School of Business and Economics, where Michelle earned her MBA in 1998—for a needs-based business student to study abroad, an experience of travel and learning that Matt attributes to being transformational in his own life.

“We are big believers and supporters of furthering one’s education outside of high school and are aware of the challenges and the cost. The value of a college education is immense and expands your worldview.”

— MATT GALVIN For Matt, he thinks of his father Michael Galvin, ’59, who didn’t have the same opportunities he had when a student to study abroad as Michael had to focus on work and securing loans to pay for tuition.

Others who might be in the same position shouldn’t be prohibited from learning abroad due to finances, says Matt.

“I was able to study abroad and lived abroad in Italy. It felt like it made lots of sense to help students have these types of life experiences.”

Their decision to invest in the creation of an endowment for Rainier Scholars—a program that offers a pathway to college graduation and career success for underrepresented students of color—aligns with their philosophy of giving back in impactful ways that create opportunities for the disenfranchised and first-generation and BIPOC students. In September 2020, Seattle University signed a memorandum of understanding with Rainier Scholars that ensures that the university will meet the full demonstrated financial need for every Rainier Scholar admitted to SU. The Galvins also support various community organizations, such as Community Passageways, which helps at-risk youth.

“One of our core values is to do the right thing. It comes from our founder (Dorene McTigue). We feel fortunate to be part of the community in the greater Seattle area and feel a responsibility to give back,” says Michelle, who also chairs SU’s Board of Regents, and notes that Pagliacci provides a food/pizza delivery and operates a soup kitchen to help combat food insecurity.

“To amplify what Michelle was saying, the organizations we support our doing incredible work to make our communities better—for the disenfranchised—and it’s the right thing to do and important work to do,” adds Matt.

And, notes Michelle, “the fact that there are no endowed scholarships for Rainier Scholars” was a motivating factor to create this endowment. “Hopefully we are leading the way.”

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Michelle and Matt Galvin

“We are big believers and supporters of furthering one’s education outside of high school and are aware of the challenges and the costs,” says Matt. “The value of a college education is immense and expands your worldview.”

Both Matt and Michelle give reverence to Dorene McTigue, the previous longtime owner of Pagliacci Pizza, who for years has been a strong and generous supporter to Seattle University and other organizations throughout the region. For 15 years McTigue served on the SU Board of Regents and has provided philanthropic support to various programs and schools, from the SU Fund to the Student Center, the Chapel of St. Ignatius to the Albers School of Business and Economics.

And though the Galvins have owned the pizza chain for the past 23 years, Matt was not looking to invest in a pizza business initially. Though he worked in a pizzeria growing up, the “idea of owning one didn’t seem like something I was really interested in doing. … But I fell in love with the business, the diversity of employees, the pace, it was all really intoxicating.”

The Galvins’ advice for others considering creating an endowment or contributing to an existing scholarship or program is to just do it.

Says Michelle, “It’s a lot easier than you think to set this up. And the university benefits deeply from this type of partnership and we benefit. It continues to give back.”

Learn more about the Rainier Scholars: rainierscholars.org/

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PAVING THE WAY FOR GROUNDBREAKING RESEARCH The inaugural Rogel Professorship enables Dr. Stephen Luckey’s innovative research and student mentoring.

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By KIYOMI KISHABA eattle University is where innovation meets humanity, and a great example of this can be found in Associate Professor of Biology Dr. Stephen Luckey’s research of heart disease and heart failure.

“The greatest impact that the Rogel Professorship This research, which began in July, was made possible has provided me is devoted by the inaugural Rogel Professorship. Luckey’s scholarship allows him to seek better understanding of time to think more deeply human health and well-being through laboratory-based and pedagogical research. about my research projects With the generosity of an endowment established by Steven Rogel and his late wife Connie, ’67, the recently in the context of human created Rogel Professorship is awarded to a faculty member conducting bio-medical or bio-engineering research and ideally mentoring undergraduate researchers. health and disease.”

The Rogels are ardent proponents for research and education at Seattle University, and their generous contributions include the Connie and Steven Rogel Anatomy and Physiology Lab in the Sinegal Center for Science and Innovation.

— DR. STEPHEN LUCKEY

“The greatest impact that the Rogel Professorship has provided me is devoted time to think more deeply about my research projects in the context of human health and disease,” Luckey says. “My overarching goal for the professorship is to accelerate my research program such that I can complete several ongoing projects and, at the same time, develop new projects. If not for the professorship, none of these new experiments would be possible.”

One arm of his research revolves around finding ways to help prevent heart disease, which is the leading cause of mortality in the United States. For this, Luckey’s lab is conducting a meta-analysis, a statistical approach combining results of other studies, which was conducted over the summer with student researcher Natalie Crouse, ’24, and featured at the 2023 SU STEM Research Showcase. The research required an exhaustive review of scientific literature about cardiovascular disease and exercise to corroborate the findings of studies. The team was particularly interested in the impact of different types of exercise and biological sex on heart disease.

“Ultimately, the research will contribute to the development of therapeutic strategies that prevent or reverse cardiac disease in all ages, but specifically, in the aging female population. Thus, helping to undo systemic biases in biomedical research, a goal which is consistent with the Jesuit principles of providing service to and pursuing justice for underserved populations,” Luckey says.

The second project focuses on sleep health. This project is an opportunity for students with less lab experience to participate in clinical research and is applicable to the undergraduate population interested in the human health profession. Luckey plans to focus on both sleep disparities and the impact of reduced sleep on stress reactivity in undergraduates and how each impact health across different ethnic and racial groups.

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“My commitment to undergraduate research is grounded in the Jesuit values embodied by the philosophy of cura personalis—care for the whole person—and the commitment to developing leaders who work in the Dr. Stephen Luckey

service of others.”

Along with advancing scientific understanding, mentoring is a fundamental element of faculty research at Seattle University. Students have the chance to experience this hands-on research with the professorship holder and learn about conducting a large-scale research project.

“Because of the professorship, I have been able to increase the number of students I’m actively working with from one to four and from two projects to four. I expect this capacity will increase in the spring quarter when I have another course release and in preparation for the upcoming summer work,” Luckey says. “A small milestone includes one of the research students submitting an abstract so she can present her research at a national conference in April.”

Looking ahead at the next year of the professorship, Luckey, along with student researchers and co-authors, will continue researching and working towards publishing their findings. Luckey also plans to create an upper-level biology research-based course focused on human physiology and develop a sustainable research program in this area of health and disease.

“My commitment to undergraduate research is grounded in the Jesuit values embodied by the philosophy of cura personalis—care for the whole person—and the commitment to developing leaders who work in the service of others,” Luckey says. “Engaging undergraduate student researchers in clinically relevant, novel scientific research is central to my work as a faculty member.”

Donor funding is integral to supporting faculty research and developing student research opportunities.

With this endowment, the Rogels’ impact ensures that transformative scholarship and undergraduate research will continue for decades to come.

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A LEGACY FOR THE FUTURE The D’Vonne Pickett Jr. Endowment will ensure that Black- and minority-owned businesses will be supported by SU’s Project Center while ensuring Pickett’s legacy lives on.

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By ANDREW BINION

o cement the legacy of D’Vonne Pickett Jr., ’14, Seattle University has established an endowment in his name to ensure that future generations of Black-and minority-owned businesses benefit from the College of Science and Engineering’s Project Center.

In 2018, Pickett and his wife, KeAnna Rose Pickett founded The Postman in Seattle’s Central District, a mail business located in the heart of Seattle’s historical Black community.

Prior to starting businesses, Pickett, who majored in communications, played for the men’s basketball team as a guard and for the London Lightning professional team in Ontario, Canada.

At age 31 the father, son and brother—and a stalwart member of the community—was shot and killed Oct. 19, 2022, while locking up The Postman. His tragic death, called “senseless” by the Seattle Times in an editorial, shocked and devastated not only Pickett’s close-knit family and friends, but his entire community and the SU community as well.

For three years starting in 2020, The Postman partnered with the Project Center, which teams up business, government agencies and nonprofits with seniors majoring in STEM fields to focus on a project, giving students valuable on-the-job and real-world experience.

To fund the endowment, Seattle University set the goal of $100,000 and the Ellison Foundation has pledged to match donations up to $50,000.

The work enabled by the endowment is something KeAnna Rose Pickett says aligned with her late husband’s life goals.

“D’Vonne had this tidal wave effect on people, just how he lived his life and how that affected others,” she says.

“That’s what makes me feel good about this effort, that it gives people opportunities to live out those values that D’Vonne lived.”

Pickett’s roots in Seattle run deep, from his family to the broader community. Though he was focused on the future, he took care to respect the past. The Postman honors his great-grandfather, Jacques Chappell, a U.S. Postal Service letter carrier in Seattle.

“He was everything to me, everything to his family, his kids and community,” Pickett’s mother Nicky Chappell says of her son. “He was definitely a pillar in our community.”

The idea of creating an enduring tribute to Pickett started with friends and fellow former SU men’s basketball players such as Fred Wilson, ’17, and Taylor Olson, ’10, and was further championed by Ryan Webb, ’09, community engagement officer for the Ellison Foundation.

“The thing that touched me right away was the number of people who showed their support in the days and weeks after D’Vonne’s death, how many people respected and looked up to him outside of sports,” Olson says.

Rachael Brown, director of the Project Center, says that through the D’Vonne Pickett Jr. Endowment, the Project Center will carry forth the Picketts’ legacy of forging profound connections and uplifting the community.

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“By engaging with local Black- and minority-owned businesses, we are able to show our students the positive impact that diverse entrepreneurs have in business,” Brown says. “This commitment embodies D’Vonne and KeAnna’s spirit of empowering youth to envision and achieve their greatest dreams.”

The Postman, founded in 2018, is located in the heart of Seattle’s historical Black community.

“D’Vonne had this tidal wave effect on people, just how he lived his life and how that affected others.

That’s what makes me feel good about this effort, that it gives people opportunities to live out those values that D’Vonne lived.”

— KEANNA ROSE PICKETT

Donate to the D’Vonne Pickett Jr. Endowment here: goseattleu.com/sports/2023/6/21/giving-dpj.aspx

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HIGHLIGHTS & PERFORMANCE

9.3% General University Support

AS OF JUNE 30, 2023

19.8%

ENDOWMENT PERFORMANCE

Chairs/ Professorships

The Seattle University Endowment’s overall net return for the fiscal year ending June 30, 2023 was 8.9 percent. The Endowment’s fiscal year performance benefited from the strong rebound in the US and international public equity markets after the negative equity returns in fiscal year 2022.

32.9% Academic Support

36.2% Scholarships

Seattle University’s Investment Committee, with data provided by the university’s advisers, closely monitors the endowment’s returns and asset allocation compared to peer schools.

The following pages highlights key benchmarking information about the endowment’s investment and performance versus many of our peer institutions.

ENDOWED SUPPORT

BY PURPOSE (FY2023)

O

IN D

IV

ID

EN

540

TOTAL DISTRIBUTION

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N U M BER

TS

O

L TA

F

$297,799,000 $13,907,000

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MARKET VALUE

UA

L EN D

OW

M

33.7% US Equity

PORTFOLIO ALLOCATION

12.4% Developed Markets Equity 4.1% Cash and Equivalents

5.8% Emerging Markets

21.3% Fixed Income

15.0% Private Equity 6.8% Income Strategies

YEAR OVER YEAR PERFORMANCE SUMMARY

$200M

$225M

(FISCAL YEAR)

$250M

$275M

$300M

$325M

2019

MARKET VALUE

2020 2021 2022 2023

INVESTMENT RETURN

-5%

5%

15%

20%

25%

30%

2019 2020 2021 2022 2023

$9 M

UNIVERSITY SUPPORT

10%

$10 M

$11 M

$12 M

$13 M

$14 M

2019 2020 2021 2022 2023

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ENDOWMENT VALUE BENCHMARKING INFORMATION WITH PEER INSTITUTIONS $1.5B

$1B

2022 2023 $800M

$600M

$400M

ENDOWMENT MANAGEMENT The Seattle University Endowment is invested with a long-term view to ensure that it will grow at a rate above inflation, while also providing a stable stream of income to support the purposes for which the funds were created. The university’s investment strategies and risk management approach are tailored to balance the future purchasing power of endowment funds and meet current spending needs.

The Seattle University Investment Committee oversees the endowment fund. Cambridge Associates is the university’s Outsourced Chief Investment Officer (OCIO) for the fund.

Decisions as to how the endowment invests its assets will be made by the OCIO based on asset allocation, distributions and restrictions defined by the Investment Committee.

The OCIO is required to follow these instructions in all they do for the endowment.

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XAVIER UNIVERSITY

LOYOLA MARYLAND

SEATTLE UNIVERSITY

GONZAGA UNIVERSITY

UNIVERSITY OF SAN FRANCISCO

UNIVERSITY OF THE PACIFIC

LOYOLA MARYMOUNT

UNIVERSITY OF SAN DIEGO

CREIGHTON UNIVERSITY

UNIVERSITY OF DENVER

SANTA CLARA UNIVERSITY

$200M

INVESTMENT COMMITTEE CHAIR Russell Hagen, SVP and Chief Development Officer, Weyerhaeuser Company TRUSTEES Jeannie Berwick, Executive Director, One Equal Heart Foundation Pat Callans (ex-officio), EVP, Administration, Costco Wholesale Corporation Robert Grimm, S.J. Eduardo Peñalver (ex-officio), President, Seattle University Ryan Sawyer, Principal, Viewpoint Capital Management NON-TRUSTEES Marisa Grant, Chief Investment Officer, Pugh Capital Management Ben Graves, Investor, Cascade Asset Management Company Jason Malinowski, Chief Investment Officer, Seattle City Employees’ Retirement System Matt McBrady, Professor of Practice, University of Virginia Darden School of Business Vera Minar, Partner, Serra Street Partners Sam Smith, University of Washington Investment Management Company SEATTLE UNIVERSITY REPRESENTATIVES Marcos Brizuela, Graduate Student Sarah Cox, Associate University Counsel Sarah Finney, AVP, Gift Planning and Donor Relations Wilson Garone, VP and CFO, Finance and Business Affairs Edgar Gonzalez, VP, University Advancement Woo-Joong (Andy) Kim, Professor and Chair, College of Science and Engineering Bret Myers, Director, Treasury and Risk Management Mary Petersen, VP and University Counsel Dhivya Ramanujam, Undergraduate Student OUTSOURCED CHIEF INVESTMENT OFFICER (OCIO) Cambridge Associates For fiscal year July 1, 2022 – June 30, 2023

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CONTINUE YOUR IMPACT If you have questions about this report or your endowment, please contact University Advancement at 206-220-8476 or stewardship@seattleu.edu.