University endowments are under pressure, none more so than Yale University and its $41 billion endowment.
A pioneer in private equity, the university is now making a significant move: preparing to sell approximately $2.5 billion of its private equity stakes.
This “Project Gatsby” signals a potential turning point for endowment management. A focus on illiquid assets famously fueled Yale’s substantial growth, inspiring countless other institutions. However, with pressures like reduced government funding and looming tax increases on endowment income, even powerhouses like MIT, Notre Dame, and the University of Illinois are re-evaluating their investment playbooks.
This decision appears to be a strategic move to manage liquidity and adapt portfolios in uncertain economic times.
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