Princeton, based in New Jersey, posted a 23.7% return for the year through June and said Friday its endowment hit a record $42.3 billion, up from $36.4 billion a year earlier. The university did not disclose which investments drove the results, and noted the total reflects investment performance, fundraising, and spending.
The endowment supplies roughly two-thirds of Princeton's operating revenue, helping to fund scientific research and faculty compensation. It also underwrites one of the most generous aid programs in higher education, with assistance extending to roughly 70% of undergraduates and to nearly all graduate students. The university broadened that program last year, and under the expansion, undergraduate households with incomes below $250,000 typically owe no tuition. Over the past decade, the fund has returned 11.3% annually.
In February, President Christopher Eisgruber warned the university cannot count on outsized gains and said Princeton is pivoting from a growth-focused approach amid weakening long-term returns across university endowments. Spokesperson Michael Hotchkiss said, "While this year's returns are good news, our planning assumption for the long-term rate of return remains at 8%," adding the school remains on "a multiyear path to a more sustainable budget."
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Princeton's latest return beat the Wilshire Trust Universe Comparison Service median of about 19% before fees for institutions with at least $500 million in assets. On Thursday, powered by stock holdings and venture capital, Harvard notched a 27.1% gain, pushing the endowment to an all-time high of $68 billion. Why it matters for your portfolio: big endowments are bellwethers for private markets and capital allocation, and Princeton's tilt toward sustainability over pure growth, even after a strong year, shows leading allocators are positioning for lower long-term returns.
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