Yale SOM Announces Largest Alumni Gift to Date

New Haven, Conn. — Yale President RichardC. Levin PhD '74 announced on January 4, 2010, that Lei Zhang MBA '02,GRD '02 has pledged the largest gift ever to the Yale School ofManagement by a graduate of the school. Zhang's pledge, made less than10 years after his graduation from Yale, also represents the largestgift to date from a young Yale University alumnus. Zhang, the founderand managing partner of Hillhouse Capital Management, will give$8,888,888 primarily to help build Yale SOM’s new campus.A portion of the gift will provide scholarship support for theInternational Relations Program at Yale's new Jackson Institute ofGlobal Affairs, as well as funding for a variety of China-relatedactivities at the university.

The announcement came at a special eventco-hosted by Levin and Yale School of Management Dean Sharon M. Osterat the Westin Beijing Chaoyang, which included a panel discussionbetween several prominent SOM alumni called "Investing in the MiddleKingdom."

The panel discussion, moderated by Levin,included Lei Zhang, as well as Brad Huang '90, founder and president,Lotus Capital Management; David Li '94, managing director, E.M. WarburgPincus & Co.; Liang Meng '97, CEO Greater China Private Equity,D.E. Shaw & Co. Ltd; and Kevin Zhang '94, managing partner,Trustbridge Partners Ltd.

In announcing the gift, President Levincommented, "This truly extraordinary and auspicious gift reflects thedeep commitment to Yale that Lei Zhang shares with so many fellowgraduates of the School of Management. Lei’s generosity also representsa significant step toward the realization of SOM’s new campus."

Dean Oster added, "I’m delighted to behere in Beijing with so many of our former students, including Lei. Hisdevotion to SOM is remarkable, and the entire SOM community joins me inthanking him for his wonderful support. We look forward to theconstruction of the auditorium in the new campus that will bear LeiZhang’s name."

Zhang, a member of the SOM Board ofAdvisors and China Board of Advisors, started Hillhouse CapitalManagement in 2005 and rapidly built the largest independent fund inChina. While at SOM, he worked for David Swensen at the YaleInvestments Office. He translated Swensen’s Pioneering PortfolioManagement into Chinese, a task that required him to create Chinesewords for "fiduciary" and "endowment." When he moved back to China,with an initial investment from the Yale endowment, he opened HillhouseCapital Management with $30 million under management. Zhang has madeimpressive returns and attracted numerous new investors; he now has$2.5 billion under management.

Zhang chose to make his gift $8,888,888because of the significance of the number eight in Chinese culture.Throughout China, eight is considered lucky. The Chinese word for"eight" sounds similar to those for "wealth" and "fortune."

Zhang, raised in Central China, placedfirst out of 100,000 students in his province for the nationaluniversity entrance exam. He studied international finance at thePeople’s University of China and chose Yale to earn his MBA and amaster’s degree in international relations. Zhang has said that Yalechanged his life. He named both his company and a foundation forHillhouse Avenue, the New Haven street that runs through the SOM campus.

 

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