Harvard eyes $1bn private equity sale to boost liquidity and rebalance $53bn endowment

Harvard University is advancing plans to sell approximately $1bn worth of private equity fund stakes through a secondary market transaction, continuing its strategy of actively managing its $53bn endowment portfolio.

According to sources cited by Reuters and Bloomberg, Harvard Management Company (HMC) has engaged Jefferies Financial Group as adviser on the deal, with Lexington Partners emerging as a potential buyer. The transaction, initiated in 2023, is expected to be structured as a secondaries sale, although terms remain under negotiation.

The sale is not linked to political pressure or federal funding threats, but reflects a broader trend among large institutional investors seeking liquidity and portfolio rebalancing amid ongoing market uncertainty.

Despite the planned divestment, private equity remains a core pillar of Harvard’s investment strategy. As of 2024, private equity accounted for 39% of Harvard’s endowment, up from 34% in 2021—the year the university last completed a $1bn secondary sale.

The move comes shortly after Harvard announced plans to raise $750m in the debt markets as a precautionary liquidity measure.

Harvard’s activity mirrors that of other leading endowments, including Yale University, which recently confirmed it is also exploring a private equity secondary sale, reportedly working with Evercore as its adviser.

As secondary market activity accelerates across the private equity landscape, institutional investors are increasingly leveraging these transactions to optimise portfolio construction, extend duration, and crystallise gains.

Source: Reuters


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