TIAA-CREF will invest $1 billion of its own capital in its newly launched endowment management subsidiary, Covariance Capital Management, Financial Times reports. Covariance, which was launched recently, will be headed by Scott Wise and run as an independent unit based in Houston, Texas. The new fund will target almost $1.5 trillion of assets held by U.S. endowments and non-profit foundations. The new fund, which will look for allocations from endowments with over $100 million in assets, plans to start investing in July. The firm is using cash from its insurance arm general account to seed the fund.

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