<p>Hey, if you are going to think big, look for a Rockefeller sized contribution of $5bn :)</p>
<p>The Munger donation:</p>
<p>1) The new building is $180MM or so; with the $100MM gift, the net to UM is $80MM</p>
<p>2) If you present value the depreciation of 2.5%/year over forty years, and do so at the long run inflation rate of 3.25%/year, the amount is roughly $100MM; in other words, getting that donation at spot time is analogous to having the forward depreciation immunized;</p>
<p>3) The gross income should be roughly: $12,000/year * 600 students * 40 years or roughly $288,000,000 full life, or roughly $160MM on a PV basis. So, over 40 years the gross revenue, at spot is roughly 2 times Michigan’s out of pocket;</p>
<p>4) in some ways this deal looks a bit like Cook’s original approach to the law quadrangle: put up the lawyer’s club first in order to get a revenue stream rolling in; while the return from rents/leases may end up not being quite as high as the endowed part of the portfolio, is a great deal for Michigan;</p>
<p>5) it looks like the $10MM endowment should support around 10 full rides at the usual payout rate;</p>
<p>All in all, a great donation.</p>
<p>blue85, Larry Page is going to donate a hefty amount in the future. Nowhere near $5 billion mind you, but probably $200-$500 million over his lifetime.</p>
<p>My guess is that his donation will lead of the new campaign.</p>
<p>Could well be rjk. I could see a large, $150 or $200 million gift from Page anchor the new campaign.</p>
<p>“blue85, Larry Page is going to donate a hefty amount in the future. Nowhere near $5 billion mind you, but probably $200-$500 million over his lifetime.”</p>
<p>Alexandre: yes, that is likely, I was being entirely facetious. As to timing, perhaps not in the campaign launch, but at the anniversary. Were I giving the gift, I’d wait until 2017 and make it $200MM or $1MM for each year of the school’s life. Whatever the amount, his commencement speech noting the attendance at Michigan of multiple members of his family (father,mother, brother) suggests he will ultimately gift some amount. Of note: his brother Carl sold an entity for around $400MM and probably took out $50MM or so and might also end up being a donor.</p>