University endowments posted their strongest returns since 2021, driven by private market bets on SpaceX and artificial intelligence.
Harvard University, Washington University in St. Louis, and the University of North Carolina system ranked among the top performers.
Venture capital holdings delivered outsized gains as AI companies surged in value throughout the fiscal year.
SpaceX stood out as a major contributor. The Elon Musk-led aerospace firm saw its valuation climb sharply during the period.
Endowment managers increasingly favor private assets over public equities. This shift has paid off in recent years.
The returns mark a turnaround from weaker performance in fiscal 2022 and 2023, when markets slumped.
Large endowments with heavy venture exposure captured the biggest upside. Smaller funds with less access to top-tier deals lagged behind.
AI startups attracted record funding rounds, boosting portfolios that held stakes in those companies early.
Analysts caution that private market gains may not persist. Valuations can swing quickly if market conditions change.
The strong results may pressure other institutions to increase allocations to venture capital and growth equity.
