It is starting a $250 million VC fund.

Re/code reports.

Here’s Why the University of California Is Getting Into the Venture Capital Business

In September of last year, the University of California Board of Regents approved the creation of an independent venture fund that would launch with $250 million, and primarily invest in startups that emerge from UC research. Last week, the board named billionaire Sacramento Kings owner and entrepreneur Vivek Ranadivé as the fund’s leader.

Why might a university, especially a gigantic public one like the UC, get into the venture investing business? Though Ranadivé and the university talk a big game about building an entrepreneurial culture in the UC system, the biggest reason is to retain a slice of the cash that companies started on campus generate.

Ranadivé nodded to this in a phone interview with Re/code, calling the UC “a terrific place where that [intellectual property] can be channeled.”

“We’ll partner with all the incubators, both at UC and outside as well. We see ourselves as being the next step in growth equity, Ranadivé added. “We’ll absolutely partner with the entrepreneurship clubs and communities. We’ll also partner with the Andreessens of the world.”