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, reported news agency Reuters, citing a person familiar with the matter, said on Thursday.
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.
Terms of the sale
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.
Harvard University sues Trump administration
Harvard University had filed a lawsuit against the Trump administration, arguing that freezing federal grants is unlawful. The University had previously rejected a list of demands of the Trump administration that aimed to curb diversity initiatives and fight anti-semitism, according to a report by the BBC. Reportedly, the administration also cancelled $400 million of funding for Columbia University over not following its demand to curb anti-semitism on the campus.
‘A liberal mess,’ Trump slams Harvard
On Thursday, Donald Trump called Harvard an “Anti-Semitic, Far Left Institution,” as the University files a lawsuit against his administration. “The place is a Liberal mess,” Trump wrote on his Truth Social platform, also stating that the university has admitted students “from all over the World that want to rip our Country apart.”
Trump’s order of foreign funding for Universities
Trump’s latest post comes after he signed an executive order on Wednesday to ensure transparency of foreign funds in Universities and colleges.
The order seeks complete and timely disclosure of foreign funding by higher education institutions. It directs universities to disclose the true source and purpose of foreign funds and warns that certain Federal grant funds could be revoked for failure to comply with foreign funding disclosure requirements.
Trump has directed the Secretary of Education to reverse any actions by the previous administration that permit universities to obscure details regarding their foreign funding.
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