8 Ivy League Colleges’ Endowment Returns, Ranked: 2023
Fiscal 2023, which ended June 30, was a so-so period for university endowment returns. Some of the richest U.S. universities posted sluggish returns, according to Inside Higher Ed, and a majority of the top 20 endowments saw returns of less than 5%.
For Ivy League endowments, fiscal years 2022 and 2023 delivered the worst returns in the past 10 years, according to PitchBook. And as valuation corrections cut through the private markets, they may have to wait a while before they see above-average returns again.
Only one Ivy League endowment exceeded 4% in fiscal 2023. And the pain may not be over with these endowments.
Following a decade with annualized returns that averaged around 10%, the weak fiscal 2023 returns are a result of a high interest-rate environment, volatility in public equities and a drawn-out valuation correction in the private markets.
In fiscal year 2024, endowment returns will depend heavily on public market performance and their valuation processes, according to PitchBook. Besides continued catch-up declines in private asset valuations, higher interest rates will continue to hold back dealmaking.
See the accompanying gallery for the fiscal year 2023 endowment investment performances, ranked from worst to best.