University endowments are reporting their strongest investment returns since 2021, driven largely by gains in SpaceX and artificial intelligence holdings.
Harvard, WashU and the UNC system were among the institutions that benefited from their investments in the Elon Musk company. The rebound reflects a broader recovery in private market and technology assets that had weighed on endowment performance in recent years.
SpaceX, the rocket and satellite company founded by Elon Musk, has been among the most closely watched private holdings held by large institutional investors. Its valuation gains have lifted returns for schools that bought in through earlier funding rounds, while AI-related investments added further support to portfolios.
The results are significant for universities, which rely on endowment income to fund scholarships, research and campus operations. Strong returns can ease budget pressure and reduce the need for increased tuition or spending cuts, though endowment performance remains sensitive to market swings and the valuation of illiquid assets.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing