U.S. universities are reassessing their heavy investments in private equity amid mounting financial and market challenges. Prestigious endowments like Yale are exploring the sale of large private equity holdings after years of sluggish returns and liquidity pressures, a shift from their historic commitment to the asset class. Yale’s private-asset portfolios, long seen as a source of outsized gains, have struggled to produce timely cash returns, prompting reconsideration of strategy.
Similarly, Harvard University is planning to offload about $1 billion in private equity fund stakes due to unfavorable market conditions and the difficulty of converting illiquid investments into cash for operations.
These moves reflect wider concerns among university endowments as they balance the need for high returns with demands for liquidity, regulatory pressures, and economic uncertainty. Some institutions are trimming private assets or tapping secondary markets, while others reassess their overall risk exposure. #USGovernment #Crptocurrency