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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Heard an interview today with Bill Ackman, hedge fund manager, alum, and donor.

Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated. Further, Harvard has $8 billion of debt. Apparently, the day-to-day operation of the overall enterprise is heavily dependent on government money and annual donations.

This reminds me that UChicago is in even worse shape.

How do these great schools with so many great minds mess this all up?[/quote]

ummm. this is every private T20 with an endowment. Its ALL in PE and VC. Where have you been?[/quote]

Sure, but what about the rest? The borrowing? The inability to fund daily operations without the government and ANNUAL/current donations? What business runs like this, and who would have thought that such “wealthy” and distinguished ones would? Astonishing.

This isn’t the case at all top 20/25 schools. [/quote]

What businesses have endowments?  Endowments aren’t intended to be used to finance operations, the investment income  generated by endowments are.   And yes, private businesses that have government contracts rely on that revenue.  You seem very confused about how the world works.[/quote]

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