Harvard University is in advanced discussions to offload approximately $1bn worth of private equity fund stakes in a secondary market transaction, as the Ivy League institution continues to actively manage its $53bn endowment, according to a report by Reuters.
The report cites an unnamed source familiar with the matter as saying that the sale, initiated in 2023, is not tied to any political pressure or federal funding threats.
Harvard Management Company (HMC), which oversees the university’s endowment, is working with Jefferies Financial Group as advisor on the deal, while Lexington Partners has emerged as a potential buyer, according to Bloomberg, which first reported the transaction. The deal structure is expected to be a secondaries transaction, though final terms remain under negotiation and could still change.
While large institutional investors have increasingly turned to the secondaries market to manage exposure and improve liquidity, the move by Harvard is part of a broader trend among endowments seeking to monetise older private equity holdings amid market uncertainty.
Despite the divestment, Harvard’s private equity allocation remains substantial. According to its most recent financial report, private equity accounted for 39% of the endowment portfolio in 2024, up from 34% in 2021 — the same year it completed a similar $1bn secondary sale.
News of the sale also follows Harvard’s announcement earlier this month that it plans to raise $750m in the debt markets as a precautionary measure.
Yale University, another major player in the endowment space, also recently disclosed that it is exploring a private equity secondary sale, reportedly working with Evercore on that transaction.
