Key Takeaways
- • The University of Chicago endowment returned 10.2% in fiscal 2025, up from 8.4% the prior year, with assets rising to $10.9 billion as of June 30, according to the university's announcement.
- • The reported return was trimmed from 11.1% to 10.2% by a strategic sale of private markets assets on the secondary market, which cost the fund roughly 90 basis points.
- • Digital asset holdings and venture capital exposure to artificial intelligence were cited as strong return drivers, with the university stating these investments outperformed the overall portfolio.
- • Annualized returns over the trailing 15 and 20 years were 8.1% and 7.8%, respectively. Andy Ward has served as chief investment officer since 2021.
- • Secondary market sales of older vintages and underperforming alternatives are clearing at discounts of 10% to 30%, a trend illustrated by the New York City pension system's $5 billion private equity sale to Blackstone.
Summary
The endowment of the University of Chicago returned 10.2% in fiscal 2025, the university announced Tuesday, with assets reaching $10.9 billion as of June 30. The result marks an improvement on the 8.4% return posted in the prior fiscal year. Over the past 15 and 20 years, the endowment has delivered annualized returns of 8.1% and 7.8%, respectively. Andy Ward has served as chief investment officer of the fund since 2021.
The university said performance was negatively affected by a strategic sale of private markets assets on the secondary market. That transaction reduced the reported return from 11.1% to 10.2%, a drag of roughly 90 basis points according to Chief Investment Officer's coverage. The university described the sale as focused on divesting long-time holdings that no longer fit its long-term strategy.
Secondary sales of this kind have become more common among large institutional investors seeking to exit older vintages and underperforming alternative investments, typically at discounts of 10% to 30%. A comparable transaction occurred in May, when the New York City pension system sold a $5 billion private equity portfolio to Blackstone. According to the same reporting, that sale subsequently reduced the pension system's fiscal 2025 private equity return by four percentage points, leaving the portfolio at 4.5%.
UChicago also said its digital asset investments produced positive returns and were well in excess of the overall portfolio. Research from Markov Processes International, cited in the coverage, identifies digital assets and venture capital exposure to artificial intelligence as strong return drivers for university endowments this fiscal year, though few endowments disclose their digital asset holdings. The university stated that these assets are held alongside a broad selection of investment vehicles to support long-term returns for students and faculty.
The university said performance was negatively affected by a strategic sale of private markets assets on the secondary market. That transaction reduced the reported return from 11.1% to 10.2%, a drag of roughly 90 basis points according to Chief Investment Officer's coverage. The university described the sale as focused on divesting long-time holdings that no longer fit its long-term strategy.
Secondary sales of this kind have become more common among large institutional investors seeking to exit older vintages and underperforming alternative investments, typically at discounts of 10% to 30%. A comparable transaction occurred in May, when the New York City pension system sold a $5 billion private equity portfolio to Blackstone. According to the same reporting, that sale subsequently reduced the pension system's fiscal 2025 private equity return by four percentage points, leaving the portfolio at 4.5%.
UChicago also said its digital asset investments produced positive returns and were well in excess of the overall portfolio. Research from Markov Processes International, cited in the coverage, identifies digital assets and venture capital exposure to artificial intelligence as strong return drivers for university endowments this fiscal year, though few endowments disclose their digital asset holdings. The university stated that these assets are held alongside a broad selection of investment vehicles to support long-term returns for students and faculty.
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