The school’s CFO explained how an endowment actually works in contrast to popular opinion. The endowment has been adversely affected by the economic downturn and the recent declines in the capital markets. As you mentioned, and contrary to...
Read moreEndowment Spending During a Pandemic at Harvard
The school’s endowment is over 380 years old. The endowment dates back to 1638, starting with John Harvard’s gift of 400 books and half his estate that made him the University’s namesake, according to University President Lawrence S. Bacow...
Read moreEstimating Endowment Losses at Harvard
Harvard is cutting expenses. They are speculating a $6 billion drop in the endowment. It is too early, and the markets are far too volatile, to know what the assets will be worth at the end of fiscal 2020. As a hypothetical exercise, assume that...
Read moreHarvard Borrows a Billion Dollars
The school is enjoying one of the perks of having triple-A credit. The University will sell up to $573 million in revenue bonds through a state agency, use the proceeds to refinance outstanding debt, and sell $500 million in taxable bonds for...
Read moreHarvard Endowment Prepared for Downturn
The school seems to be better prepared this time around. In a word, for Harvard, this is not déjà vu all over again. Harvard is a learning institution, and an early reading of its financial circumstances today suggests important differences from...
Read moreHarvard CFO on Surviving the Recession
The CFO was asked whether the school could survive another recession. We’ve done a lot of recession-based scenario planning, and the University is in a much better position than we were following the 2008 financial crisis with respect to...
Read moreFormer Harvard Endowment CEO on the Financial Crisis
In the fall of last year, the business school at Yale held a panel that included the former CEO of Harvard Management Company. On Monday, Jane Mendillo SOM ’84 and Sandra Urie SOM ’85 joined [Linda] Mason [SOM ’80] in a School of Management panel...
Read moreEndowment Payout at Harvard
In their latest financial report, the school describes the purpose of the endowment and how it works. The University’s endowment spending practice has to balance two competing goals: the need to fund the operating budget with a stable and...
Read moreHarvard Faculty Debating Fossil-Fuel Divestment
The school faculty just had its third meeting on divestment this semester to debate a new proposal. Up to now, Harvard has primarily approached the crisis from a mainstream, business-as-usual, incrementalist approach. As the wealthiest university...
Read moreHarvard CIO Narv Narvekar on Private Equity J-Curve
It takes time to build a private equity program. As many know, private equity funds draw down their capital over a period of years and then invest it for several more years before exiting. For now, and for the next few years, we will suffer the...
Read moreHarvard Endowment Performance 2019
Harvard announced their endowment figures last week. HMC [Harvard Management Company], which invests the University’s endowment and other financial assets, announced today that during fiscal 2019, the endowment’s value increased 4.3 percent, to...
Read moreGift Policy at Harvard
Should a school return a gift years after accepting it? When asked for the gift policy, [University spokesperson Jonathan L.] Swain offered a statement instead. “The gift policy is designed to ensure that no gift to Harvard will provide a donor...
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