Yale University Plans $2.5 Billion Private Equity Sale Amid Financial Pressures

NEW HAVEN, CT — June 6, 2025 Yale University is finalizing a landmark sale of up to $2.5 billion in private equity and venture capital holdings from its $41 billion endowment, marking the institution’s first major divestment of this kind. The transaction, internally dubbed “Project Gatsby,” is expected to close at a discount of less than 10% and will allow buyers to selectively acquire specific fund interests through a mosaic structure

This strategic move reflects broader challenges facing elite university endowments. Yale, a pioneer of the “endowment model” under the late David Swensen, has long emphasized alternative investments like private equity. However, recent headwinds—including rising interest rates, diminished returns, and limited exit opportunities—have prompted a reevaluation of such strategies .

Compounding these financial concerns are political pressures. The Trump administration has proposed significant tax hikes on large endowments and threatened to revoke the tax-exempt status of institutions like Yale, intensifying the need for liquidity .

Yale’s decision aligns with a broader trend among Ivy League institutions seeking to bolster cash reserves. Harvard University, for instance, is reportedly selling approximately $1 billion in private equity fund stakes .

While Yale remains committed to private equity as a core component of its investment strategy, this sale underscores a pragmatic shift in managing its endowment amid evolving financial and political landscape.

*Sources:
*https://finance.yahoo.com/news/yale-2-5-billion-private-113032100.html