Harvard is shopping almost $1 billion of private equity and venture capital and about $1.6 billion of real estate.
Barnard has about $18 million of investments in fossil fuel companies.
The relative value fund is expected to receive $400 million from the university's endowment.
The university is also trimming its stock holdings as it focuses on a long-term horizon.
Harvard is close to conceding defeat to Yale, at least when it comes to investing.
Endowment funds are turning to outside managers to run complex portfolios.
Harvard’s endowment has shaken up its executive staff.