re: A clearer picture regarding LSU and the rumors around private equity is emerging

No one has pledged $100 million dollars just yet and nothing is set in stone. LSU is looking to invest in a successful portfolio of which most have had very substantial returns over the last 15 years. This would be in lieu of just having the money put into the bank in regular savings or CD's. It would be stupid to not look into things of this nature with the incredible increasing cost of running athletic programs, especially since they now have to pay all of the athletes combined at least $21 million per year and with coaching salaries going up in all sports if you want to remain competitive.

So let's say LSU gets $100 million put into an investment account and did get a group of donors to invest $100 million with the idea that the donors would get 9% of the return and the fund goes up a moderate 10% the first year then LSU would pay out $900,000 and reap a $9,100,000 profit. If no money is paid out nor collected that first year than the fund would likely rise to $121 million the following year. Following this year LSU would have to payout about $1.9 million and would show a profit of over $19 million.

I don't see how this would be a bad idea. Together all of these big donors might have given LSU more than $100 million in the past few years. This could help offset the need to ask for quite as much. And that isn't taking into account LSU putting any of their own funds which might also be a possibility.

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a moderate 10%

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What do you have in mind that consistently provides a “moderate” 10% return?

Junk bonds? Real estate? Direct lending? Private equity investment?

In the example you laid out LSU’s goal should be an annual 10% return. But in your example the return the investor/s of the $100 million will be satisfied with is less than 1%.

First, can you point me towards these extremely low risk investments with a 10% return? Second, can you point me towards investors who are happy with .9% returns?

Earning a 10% annual return on $100 million while paying out less than 1% annually does sound very profitable. I am just curious about who they can find to make it reality.