Business
Why Are Ivy League Schools Revamping Their Investment Strategies?
Wealthy universities have been grappling with subpar returns on their private-capital investments, leading to second thoughts about where they put their money, says reporter Heather Gillers.
A: Private equity is on academic probation. Princeton University is lowering expectations for its endowment’s returns because its private-capital investments have disappointed. Yale trimmed its portfolio of leveraged buyouts for the first time in a decade. Harvard says cashing out of some private-market investments early is now part of a long-term strategy.
Private equity has long counted America’s wealthiest universities among its largest and most loyal clients. But the market for private-company investments has gotten crowded, and returns now struggle to match broader stock-market benchmarks.