Carnegie Mellon University's School of Business has received the largest donation in its history with a $55-million gift from a Wall Street investor and his wife.

With the donation, from David A. Tepper and his wife, Marlene, the school will be renamed the David A. Tepper School of Business at Carnegie Mellon. Mr. Tepper earned an M.B.A. from Carnegie Mellon in 1982 and is president and founder of Appaloosa Management, a $3-billion hedge-fund investment firm based in Chatham, N.J.

The school plans to use $5-million of the gift to attract and retain professors, develop new learning opportunities for alumni, and increase the school's visibility. The remaining $50-million will go to the school's endowment, raising it to $137-million.

"The outstanding education I received at Carnegie Mellon gave me the ability to analyze investment options in such a unique way that I am still capitalizing on what I learned there to this day," Mr. Tepper said in a written statement. "This gift is an investment in the legacy the school has already built and a vote of confidence in the future of the Tepper School of Business."

The school issued a news release about the donation on Thursday, but refused to comment further until Mr. Tepper and university officials announced the gift at a news conference today.

The form of the gift was not disclosed. Nor could it be learned whether the donation would be received immediately or over time.