Yale Races to Offload Billions in Private Equity Holdings

### Swift Summary:
– Yale university is attempting to sell up to $6 billion in private equity and venture capital investments, marking one of the largest single sales of such assets.
– The move is driven by concerns over federal funding under the Trump governance and underperformance of returns from these investments.
– A potential sale worth $3 billion has nearly been completed, with assets reportedly being sold at a slight discount.
– Yale’s endowment returned just 5.7% last year, performing below major stock indexes, although its 10-year average return still stands at 9.5% annually.
– Historically regarded as a pioneer in private equity and venture capital investing, Yale’s shift signals recalibration amidst slower-than-expected returns.

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### Indian Opinion Analysis:
Yale’s strategic decision to offload a notable portion of its private equity holdings highlights broader challenges facing institutional investors globally.For decades, Yale represented an innovative approach within higher education endowment management by prioritizing option asset classes over conventional stocks and bonds. Though, declining performance raises questions on sustainability during uncertain economic conditions.

For India-home to increasingly active players in the private equity space-the news underscores lessons on investment diversification and risk management strategies for institutions that rely on long-term gains for operational resilience. As Indian educational institutions expand their fundraising capabilities through endowment models inspired by global peers like yale, this advancement provides an possibility for reflection on balancing ambition with caution.