US University Endowments Beat S&P 500 as SpaceX and OpenAI Drive 20%-Plus Returns
Updated
Updated · Financial Times · Sep 7
US University Endowments Beat S&P 500 as SpaceX and OpenAI Drive 20%-Plus Returns
2 articles · Updated · Financial Times · Sep 7
Summary
Large US university endowments are on track to match or exceed the S&P 500’s 20%-plus gain for the year to June 30, ending several years in which private-market heavy portfolios lagged public stocks.
SpaceX’s blockbuster listing and rising valuations for OpenAI, Anthropic and other tech start-ups produced outsized gains for schools that invested early, directly or through private equity managers.
UNC’s nearly $15 billion endowment returned more than 30%, while the $3.5 billion University of Colorado Foundation gained 20.3%; Harvard held about $2.2 billion of SpaceX shares at June 30.
The rebound also reflects improving liquidity, with private equity distributions picking up after a drought that had pressured endowments as valuations fell and exits stalled after the 2021 boom.
The recovery remains narrow: venture exit value hit a record $347 billion in the first quarter, but would have been 87% lower excluding the five biggest exits, leaving returns dependent on a few winners.