Harvard University’s endowment is in talks to sell a private equity fund worth $1 billion as US President Donald Trump freezes federal funds to the institution, Reuters reported citing a person familiar with the matter.
However, the sale process that began last year is not related to funding cuts from President Trump, the report stated.
Harvard Management Company, which administers the largest endowment of higher education in the United States, has been advised by Jefferies Financial Group to sell the portfolio to Lexington Partners, according to Bloomberg News.
The terms of the deal have not been finalised yet and are subject to change, it said. Neither Jefferies nor Lexington Partners has officially responded to the development.
\The $1 billion sale comes as investors try to increase sales of private credit holdings to boost liquidity amid market volatility following Trump’s tariff policy.
Harvard had 39% funds in private equity assets in 2024
In 2024, Harvard had 39% of its funds in private equity assets, according to the annual Harvard financial report, higher than 34% in 2021, when the university sold nearly $1 billion funds in the secondary market.
Previously, the University informed of its plan to borrow $750 million from Wall Street for contingency measures.
Trump’s crackdown on Universities
These developments occur amid President Trump’s crackdown on major Universities over their alleged support for a pro-Palestinian campus, as well as other issues, including climate initiatives, transgender policies, and diversity, equity, and inclusion programs. In addition to Harvard, Yale University is also exploring a sale of a private equity stake.
