According to Bloomberg, the Harvard University fund is currently negotiating the price of private capital fund objectives valued at about$ 1 billion.
The unnamed source with strong knowledge of the situation confirmed the divestment initiative started last year, impartial of Donald Trump’s financing reduction threats.
According to a first-time report from Bloomberg News, the university’s purchase arm, Harvard Management Company, which controls the largest school investment in the country, has engaged Jefferies Financial Group to help the sales to Lexington Partners.
According to the report, the proposed exchange details are still subject to finalization and possible changes.
No reply requests from Lexington Partners and Jefferies were made.
In the face of rising market volatility brought on by Trump’s bilateral trade policies, investors are increasingly looking into private credit divestments to safe liquidity.
According to their annual report for the year ending in June, Harvard’s$ 53 billion endowment has a significant 40 % allocation of private equity investments. The school is facing challenges as well as other educational institutions as a result of investment firms ‘ struggles to return money to their limited partners and divest companies.
Endowments, pensions, and family offices are under a financial crunch due to the circumstances, which have made them reliant on their open market portfolios for immediate cash needs or take into account extra market transactions.
This development comes in response to Harvard’s recent news to safe$ 750 million in Wall Street funding as a preventative measure.
Concerned about climate activities, trans laws, and diversification programs, Trump has mentioned possible federal funding cuts for institutions in response to pro-Palestinian demonstrations against Israel’s military actions in Gaza.
Students and faculty, among other stakeholders, have urged administrative leadership to keep independence from administrative pressures.
Yale University made its goal to look into private capital fund sales on Tuesday, with Evercore providing consulting services.
