Harvard University's endowment is currently negotiating the sale of private equity fund interests valued at approximately $1 billion, according to Bloomberg.
The divestment initiative commenced last year, independent of Donald Trump's funding reduction threats, confirmed the anonymous source with direct knowledge of the situation.
The institution's investment arm, Harvard Management Company, which oversees the nation's largest university endowment, has engaged Jefferies Financial Group to facilitate the sale to Lexington Partners, as initially reported by Bloomberg News.
The proposed transaction details remain subject to finalisation and potential adjustments, the report indicates.
Requests for comment from Jefferies and Lexington Partners remained unanswered.
Investors are increasingly pursuing private credit divestments to secure liquidity amidst market instability resulting from Trump's reciprocal trade policies.
Harvard's $53 billion endowment has a significant 40% allocation in private equity investments, as revealed in their annual report for the period ending June. The university, alongside other academic institutions, is experiencing challenges due to investment firms' struggles in divesting companies and returning capital to their limited partners.
The situation has created liquidity constraints for endowments, pensions and family offices, compelling them to depend on their public market portfolios for immediate cash requirements or consider secondary market transactions.
This development follows Harvard's recent announcement to secure $750 million in Wall Street financing as a precautionary measure.
Trump has indicated potential federal funding cuts to universities regarding pro-Palestinian demonstrations against Israel's military actions in Gaza, alongside concerns about climate initiatives, transgender policies, and diversity programmes.
University stakeholders, including students and faculty, have urged institutional leadership to maintain independence from administrative pressures.
Yale University disclosed on Tuesday its intention to explore private equity fund sales, with Evercore providing advisory services.
The divestment initiative commenced last year, independent of Donald Trump's funding reduction threats, confirmed the anonymous source with direct knowledge of the situation.
The institution's investment arm, Harvard Management Company, which oversees the nation's largest university endowment, has engaged Jefferies Financial Group to facilitate the sale to Lexington Partners, as initially reported by Bloomberg News.
The proposed transaction details remain subject to finalisation and potential adjustments, the report indicates.
Requests for comment from Jefferies and Lexington Partners remained unanswered.
Investors are increasingly pursuing private credit divestments to secure liquidity amidst market instability resulting from Trump's reciprocal trade policies.
Harvard's $53 billion endowment has a significant 40% allocation in private equity investments, as revealed in their annual report for the period ending June. The university, alongside other academic institutions, is experiencing challenges due to investment firms' struggles in divesting companies and returning capital to their limited partners.
The situation has created liquidity constraints for endowments, pensions and family offices, compelling them to depend on their public market portfolios for immediate cash requirements or consider secondary market transactions.
This development follows Harvard's recent announcement to secure $750 million in Wall Street financing as a precautionary measure.
Trump has indicated potential federal funding cuts to universities regarding pro-Palestinian demonstrations against Israel's military actions in Gaza, alongside concerns about climate initiatives, transgender policies, and diversity programmes.
University stakeholders, including students and faculty, have urged institutional leadership to maintain independence from administrative pressures.
Yale University disclosed on Tuesday its intention to explore private equity fund sales, with Evercore providing advisory services.
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