Harvard University’s financial power has reached new heights. The Ivy League institution’s endowment — already the largest in the world — has grown to nearly US$57 billion (S$74 billion)
after another year of robust investment performance and record-breaking donations.
According to the Harvard Management Company (HMC), which oversees the university’s investments, the endowment expanded by about US$4 billion in the fiscal year ending June 30, 2025. The fund delivered an 11.9% investment return, surpassing Harvard’s long-term target of 8% and improving on last year’s 9.6% return, which brought the total to US$53.2 billion.
The university also received US$600 million (S$777 million) in unrestricted gifts from alumni and supporters — the highest amount ever — underscoring strong confidence in the institution despite recent controversies.
Harvard has faced political scrutiny, particularly from President Donald Trump, who accused the university of tolerating anti-Semitism amid the Israel-Gaza conflict. Critics counter that his administration’s cuts to research funding and restrictions on international student visas reflect a broader attack on higher education’s perceived liberal stance. The dispute has now entered the courts.
Nevertheless, Harvard’s financial performance remains resilient. HMC CEO N.P. Narvekar noted that the endowment continues to be heavily weighted toward private equity (41%) and hedge funds (31%), with public equities accounting for 14%.
“While our lower exposure to public equities moderated results somewhat, our strong selection of external managers drove overall gains,” Narvekar wrote in his annual letter.
The financial world closely tracks returns from elite universities like Harvard, whose pioneering use of alternative investments — such as hedge funds and private equity — has shaped the strategies of major endowments and pension funds globally.
President Alan Garber acknowledged ongoing challenges, writing that Harvard “continues to adapt to shifting conditions and threats to our revenue sources,” though he did not refer to Trump directly.
For now, the message is clear: even amid political headwinds and funding pressures, Harvard’s financial foundation has never been stronger. Photo by chensiyuan, Wikimedia commons.