Harvard endowment in talks to sell $1B in private equity holdings

Harvard University’s endowment is in advanced talks to sell about $1 billion in private equity fund interests, a source familiar with the matter told Reuters on Thursday.

The process began last year and is not linked to recent threats by President Donald Trump to cut federal funding to colleges over campus protests and other issues, the source said.

Harvard Management Company, which manages the nation’s largest university endowment at $53 billion, is working with Jefferies Financial Group on a potential sale to Lexington Partners, Bloomberg reported. Terms are not final.

The transaction, expected to take place on the secondaries market, would allow Harvard to generate liquidity amid ongoing market volatility tied to Trump’s economic policies.

Despite the sale, Harvard’s asset allocation remains unchanged. The university had 39% of its endowment in private equity in 2024, up from 34% in 2021, when it made a similar $1 billion sale.

Earlier this month, Harvard said it plans to borrow $750 million as part of contingency measures.

President Trump has threatened to withhold funding from universities over issues including pro-Palestinian protests, climate policies, and diversity programs.

Meanwhile, Yale University also confirmed this week it is exploring a private equity asset sale and is working with Evercore on the process.

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