Harvard University’s $57bn endowment is facing increasing liquidity pressure as large unfunded private equity commitments coincide with slower distributions across private markets, according to a report by the Financial Times.
Public filings show Harvard’s unfunded commitments rose from $4.6bn in 2017 to $7.9bn in 2025 following a major expansion into private markets strategies under Harvard Management Company Chief Executive NP Narvekar.
Private equity exposure increased from 16% of the portfolio in 2017 to 41% in 2025, helping drive strong returns during the 2021 dealmaking boom. However, weaker IPO and M&A activity since then has slowed exits and reduced cash distributions back to investors.
Narvekar, who is reportedly planning to retire as early as 2027, acknowledged in Harvard’s 2025 annual letter that returns had been impacted by the portfolio’s heavier weighting towards private rather than public equity.
The issue comes as Harvard faces rising financial pressure from federal funding cuts and a higher tax on endowment income. The university relies on endowment distributions for more than a third of its operating revenue.
