As US President Donald Trump stops government money to Harvard University, the university’s endowment is in negotiations to sell a $1 billion private equity fund, according to a person familiar with the situation who spoke to news agency Reuters on Thursday. But according to the article, President Trump’s funding cuts have nothing to do with the selling process that started last year.
According to Bloomberg News, Jefferies Financial Group has recommended that Harvard Management Company, which oversees the biggest endowment of higher education in the US, sell the portfolio to Lexington Partners.
It stated that the specifics of the agreement are still pending and might change. Lexington Partners and Jefferies have not formally addressed the development. As a result of market instability caused by Trump’s tariff policies, investors are seeking to increase sales of private credit holdings to enhance liquidity.
According to Harvard’s annual financial report, 39% of the university’s funds were invested in private equity assets as of 2024. This is more than 34% in 2021, when the institution sold around $1 billion worth of funds in the secondary market. The University previously told Wall Street that it intended to borrow $750 million for emergency plans.
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