CAMBRIDGE, Mass. — Harvard University's endowment, the largest in U.S. higher education, is in advanced discussions to sell approximately $1 billion in private equity fund stakes, a move driven by financial uncertainties and a sluggish market for illiquid assets, according to a source familiar with the matter. The Harvard Management Company, which oversees the $53 billion endowment, is working with Jefferies Financial Group to facilitate the sale to private equity firm Lexington Partners.
The decision comes as Harvard faces mounting pressures, including threats from the Trump administration to cut federal funding. The administration has already frozen $2.3 billion in grants, primarily from the Department of Health and Human Services, and is reviewing $9 billion in federal contracts and grants, citing violations of Title VI of the Civil Rights Act during last year's Israel-Hamas war protests. Harvard has filed a lawsuit against the administration, arguing that the funding cuts are an attempt to control academic decision-making.
