Yale University is weighing the sale of a portion of its private equity fund interests and has retained investment bank Evercore to advise on the transaction, the Ivy League institution confirmed this week.
In a statement, a Yale spokesperson said the process has “been in the works for many months,” but did not disclose the size of the potential sale or the motivations behind it.
Despite exploring secondary sales, Yale emphasised that private equity remains a core pillar of its endowment strategy.
“We remain committed to private equity investments as a major part of our investment program and continue to make new commitments to funds raised by our current investment managers,” the spokesperson said. “In addition, we continue to actively seek new relationships with private equity firms in the Endowment.”
The move comes as several elite US universities face mounting financial and political pressure, particularly in light of President Donald Trump’s threats to cut federal funding to institutions engaged in controversial social or political initiatives, including diversity, equity and inclusion efforts.
Yale’s endowment rose to $41.4bn as of 30 June, 2024, generating a 5.7% net return over the previous fiscal year, according to its latest financial report.
The decision aligns Yale with a broader trend among endowment and pension allocators re-evaluating their illiquid exposures and leveraging the secondary market for liquidity, risk management, or portfolio reshaping.
Earlier this month, Harvard announced plans to raise $750m in new debt financing, while Princeton is weighing the issuance of $320m in taxable bonds.
Though no specific rationale was provided for Yale’s secondary market activity, market participants note that private equity secondaries can offer institutions a tool to manage portfolio duration, rebalance manager exposures, or capitalise on pricing inefficiencies in a dislocated environment.
Evercore, one of the most active advisors in the private markets secondary space, has advised on several high-profile GP- and LP-led transactions in recent years.
