Princeton Endowment Returns 11% in Fiscal 2025

The endowment of Princeton University, managed by the Princeton University Investment Co., returned 11% in the fiscal year that ended June 30, a spokesperson for the university confirmed to CIO.

The endowment’s assets stood at $36.4 billion at the end of the fiscal year, up from $34.1 billion the prior fiscal year. The university’s endowment returned to stronger growth, following years of single-digit returns and losses, a result of weaker performance from alternative investments such as venture capital.

“These returns will enable Princeton’s ongoing support for groundbreaking research, innovative scholarship, and leadership on student access and affordability,” Michael Hotchkiss, a university spokesperson, wrote in an email.

Alternative asset classes, like private equity, have rebounded following years of sluggish returns, with many of Princeton’s peer institutions also posting double-digit returns for fiscal 2025. The University of Pennsylvania reported a 12.2% return, the endowments of both Harvard University and Brown University reported gains of 11.9% each, and the endowments of Columbia University and Dartmouth College reported returns of 12.4% and 10.8%, respectively.

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Princeton’s endowment returned 3.9% in fiscal 2024 and saw a 1.7% loss in fiscal 2023, the lowest of its Ivy League peers in both years. The endowment endured a 1.5% loss in fiscal 2022, although that ranked fourth among Ivy League institutions.

As of the 2024 fiscal year, the endowment targeted a 30% asset allocation to private equity, 24% to independent return assets, 18% to real assets, 12% to developed market equities, 8% to emerging market equities, and 8% to fixed income and cash.

PRINCO still has fewer assets under management than in fiscal 2021, when they totaled $37.7 billion—a year in which the fund reported a 46.9% investment gain.

“Princeton’s endowment provides roughly two-thirds of the university’s operating revenue, supporting 53% of the student financial aid program,” Hotchkiss said. “That program benefits about 70% of Princeton’s undergraduates and virtually all its graduate students. The endowment also provides crucial support for scientific research that benefits American health, prosperity and security.”