Student-Run VC Fund Turns 15x Profit on Investment

2011-12 Cougar Capital ClassPROVO, Utah – Mar 28, 2012 – Brigham Young University MBA students have accomplished what some investors only dream of: selling their investment with a return of nearly 15 times the original cost.

The Marriott School of Management's student-run venture capital fund Cougar Capital recently sold their stake in tech company Fusion-IO, generating one of the largest exits ever by a student-run firm.

"This is a testament to the goal and purpose of Cougar Capital," says adviser Gary Williams. "We want to give the students the best experience possible — we teach them the principles of investing in private companies and then allow them to apply their learning. They do an incredible job as stewards of these funds, so it's wonderful to see them be a part of a huge success like this."

Cougar Capital's class of 2009 completed the original investment and performed due diligence on the company. Cougar Capital is an evergreen fund, meaning all profits from investments are put back into the fund for future classes to invest. The fund's goal is to give graduate students the opportunity to refine their critical thinking skills in a complicated economic environment. The recent exit shows the program is on the right path.

"The true value of Cougar Capital comes from the practical application of the theories we learn in class," says Carl Haynie, the fund's director of external relations. "It becomes more than just a class when we deal with real money and have the responsibility to make decisions with profound effects."

The Marriott School is located at Brigham Young University, the largest privately owned, church-sponsored university in the United States. The school has nationally recognized programs in accounting, business management, public management, information systems and entrepreneurship. The school's mission is to prepare men and women of faith, character and professional ability for positions of leadership throughout the world. Approximately 3,000 students are enrolled in the Marriott School's graduate and undergraduate programs.