Yale University is close to finalising a landmark $2.5bn sale of private equity and venture capital stakes from its endowment, according to a report by Bloomberg.  

The transaction, dubbed “Project Gatsby,” is expected to be executed at a discount of under 10%, marking one of the largest-ever secondaries sales by a university endowment.

The portfolio comprises fund interests from Yale’s vast alternatives holdings, which have long been a cornerstone of its investment strategy. The Ivy League institution has engaged investment banking firm Evercore to advise on the sale, which is structured as a “mosaic deal”, allowing buyers to selectively acquire fund positions.

Multiple institutional buyers, including Lexington Partners and HarbourVest Partners, have reportedly reviewed the portfolio. While neither Yale nor Lexington has commented on the matter, HarbourVest declined to respond.

The move comes amid growing secondary market activity, as institutional investors seek to rebalance portfolios and manage overallocation to private markets. Yale’s decision reflects an evolving strategy among major endowments, as they pursue liquidity and portfolio optimisation without sacrificing long-term exposure to private equity.

The deal underscores the continuing appeal of seasoned portfolios to major secondaries buyers, especially when structured for flexibility and diversification.

Source: Bloomberg

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