Yale's endowment earned an 11.1% investment return, net of fees, for the year ending June 30, 2025, representing $4.5 billion in investment gains. After providing distributions of $2.1 billion to the operating budget, the endowment's value increased to $44.1 billion on June 30, 2025.
Yale's long-term track record is strong. Over the decade ending June 30, 2025, Yale's endowment returned 9.4% per annum, exceeding the median 10-year return for college and university endowments by an estimated 1.4% per annum. Yale's result exceeded that of a typical 70/30 stock and bond portfolio by 2.2% per annum over the same period.
"Yale's endowment is structured to support the university's mission in perpetuity through prudent risk-taking and sustainable spending," said Matt Mendelsohn, Yale's chief investment officer. "Over the past decade, the university has spent $15.3 billion from its endowment, representing 60% of the endowment's total value at the beginning of the period. This amount of operational support has been made possible by our strong investment results."
Mendelsohn commented that Yale's diversified portfolio generated a solid absolute return in fiscal 2025. He noted, though, that it trailed public indices during a period of strong market performance as outperformance in several asset classes was tempered by underperformance in leveraged buyouts and, more meaningfully, real estate.
"Diversification, disciplined risk management, and long-term partnerships with world-class managers will continue to best advance Yale's mission across market cycles, and the endowment's long-term performance and spending growth affirm the power of our approach," he said.
Yale's endowment is the institution's single largest source of support, providing more than one-third of Yale's operating revenue, including 60% of Yale College's budget. The product of more than 300 years of generosity, the endowment is sustained by sound investment management and disciplined spending. Spending from the endowment is used to accelerate research and innovation, enable a need-blind admissions policy, and propel the next generation of leaders who are determined to change the world for the better. The endowment's strength also enables Yale to support New Haven with the largest voluntary financial contribution of any American university to its home city.
