The five largest university endowments belong to Harvard University, the University of Texas system, Yale University, Stanford University, and Princeton University. Each holds more than $34 billion in assets. 澳洲幸运5官方开奖结果体彩网:University endowments work to earn a return on assets that can then be spent on priorities such as research, salaries, or financial aid. The typical endowment had a 澳洲幸运5官方开奖结果体彩网:drawdown percentage of 4.7% in 2023, which was slightly higher than 4.0% of assets that endowments distributed in the previous year.

Here we look at the fi𝓰ve largest university endowments in greater detail.

1. Harvard University: $53.1 Billion

Harvard University has the largest endowment in the world, with $53.1 billion in assets at the end of 2023. Harvard's endowment is comprised of more than 14,000 separate funds aggregated over the past 350 years.

Endowment funds accounted for 37% of its operating budget for the year, clocking in at $2.2 billion. Harvard Management Company has overseen the university's endowment since 1974. About 31% of assets were allocated to 澳洲幸运5官方开奖结果体彩网:hedge funds. Public equities accounted for 11% and 澳洲幸运5官方开奖结果体彩网:private equity accounted for 39%.

2. University of Texas: $44.9 Billion

The University of Texas system had roughly $44.9 billion in endowment assets at the end of the 2023 financial year, an increase of 5.4% from the year before. The University of Texas/Texas A&M Investment Company oversees the system's four major endowment funds, which are the:

• Permanent University Fund
• Permanent Health Fund
• Long Term Fund
• Separately Invested Fund

The Permanent University Fund supports the University of Texas, Texas A&M, and their smaller schools. The Permanent Health Fund contributes revenue to medical research, health education, public health, nursing, and treatment programs.

3. Yale University: $40.7 Billion

Yale University's endowment decreased by -1.5% in the 2023 financial year, reaching $40.7 billion in assets. The endowment distributed $1.8 billion to the university, representing about 34% of its revenue. The endowment's -1.5% fall in 2023 marks the first two year drop since 1978. Still, the endowment shows an average annual return of 10.9% since 2003. The endowment targets a minimum allocation of 30% to lower-risk assets, such as cash, bonds, and 澳洲幸运5官方开奖结果体彩网:absolute return funds. About 23.5% of assets are allocated toward 澳洲幸运5官方开奖结果体彩网:venture capital and 17.5% toward 澳洲幸运5官方开奖结果体彩网:leveraged buyouts.

4. Stanford University: $36.4 Billion

Stanford University held $36.4 billion in endowment assets at the end of 2023, up .4% from 2022. The endowment distributed $1.7 billion to the university in 2023, for a drawdown percentage of 5% of assets. The amount represented 23% of the university's total expenses. The majority of endowment disbursements go toward scholarships, fellowships, professorships, and other academic support.

The endowment is overseen by Stanford Management Company, which manages other assets for the university. In 2022, about 37% of the university's merged pool of assets is allocated toward private equity. Absolute return funds accounted for 18%, international equities another 17%, and real estate 11%.

5. Princeton University: $33.4 Billion

At the end of 2023 Princeton University's endowment held $33.4 billion in assets, a decrease of -4.6%. Princeton University Investment Company manages the bulk of the endowment. In 2023, the endowment distributed $1.6 billion to the university, equivalent to 4.7% of its total assets at the start of the financial year.

About 24.5% of endowment spending goes toward supporting students. This allows the university to cover 100% of tuition, fees, and room and board for students from families earning less than $65,000 per year. About 25% of undergraduates receive a 澳洲幸运5官方开奖结果体彩网:Pell Grant, which is awarded on the basis of financial need. More than 62% of undergrads receive financial aid, and 83% are able to leave school debt-free.

The Bottom Line

Large endowments allow universities to offset operational costs, fund research, and provide financial aid. While the top five schools with the largest endowments are prestigious and expensive, they endeavor to provide financial aid for lower-income students using t🏅he profits from their invested funds.