Princeton Doubles Net Assets Since Financial Crisis

Most schools have recovered since the financial crisis a decade ago.

How the wealthiest colleges manage their endowments in a financial crisis, Education Dive

But for an Ivy League school that relies on its endowment payout to cover more than half of its operating budget, their net assets have doubled.

The decade began with the University’s total net assets down 24 percent in fiscal year 2009. Over a long and mostly steady recovery, net assets rose 105 percent to $27.4 billion driven by consistently excellent investment returns in combination with prudent management of endowment spending, careful oversight of operating budget results, and successful fundraising. The University’s financial resources, as measured by net assets, enable Princeton to pursue its mission of teaching and research at a high level of quality and ensure that Princeton is affordable for students from all socioeconomic backgrounds.

Report of the Treasurer 2017-18, Princeton University

What exactly is an endowment?

The endowment is made up of more than 4,000 funds that have been established since the University’s founding in 1746, created to provide a scholarship for undergraduate financial aid.

The endowment supports the scholarship, teaching and research of Princeton’s outstanding faculty members. The University has more than 200 endowed professorships honoring the most distinguished professors. Many endowed professorships were given by alumni to further the intellectual and pursuits of faculty and to broaden University research into new areas of discovery that benefit human society.

The endowment also supports the classrooms, laboratories, libraries and academic programs as well as campus life priorities including athletics and religious life.

Princeton endowment earns 14.2 percent return, supporting teaching, research and financial aid

Fortunately, some money was also available to polish the roof crown on Nassau Hall.

Nassau Hall roof replacement, cupola restoration will begin this month

Look up: Renovated cupola and roof crown Princeton’s Nassau Hall

To learn more on how they invest their endowment, listen to Princeton’s Andy Golden on Capital Allocators.

Episode 13:  Andrew Golden – Beyond the Long Term

Scaffolds surround the crown of Nassau Hall as it was restored last year in June.
Twitter @Princeton

Post by Marcelino Pantoja