Trends
The largest university and college endowments experienced double-digit gains in two consecutive years drive by a return to long-term trends like large private equity allocations.
Markets are due for a correction in 2026 after three consecutive years of double-digit returns on most indexes, with a new study finding many institutions are favoring active strategies.
Secondary fund investments are increasingly driving interest among institutional investors as the industry finds it’s a good place to gain comfort with private markets and efficiently deploy capital amid deal activity and fundraising surges.
One discretionary advisor sees an imperative need for in-person interaction at foundations and endowments to successfully advance mission-oriented objectives, particularly amid changing board demographics.
Some endowments and foundations are looking to emerging market debt, multi-asset credit and long-term bonds as a way to diversify their portfolios while also capitalizing on the macrotrends leading to a weaker greenback.
Private markets funds are set for 70% growth by the year 2030 with private equity expected to be a key driver of that expansion, according to a recent analysis.
Nonprofit investors can find attractive investment opportunities in precious metals like gold, critical minerals like lithium and agriculture that diversify their real assets portfolio, while also providing a potential hedge against ‘stagflation.’
Investment consultant Meketa Investment Group conducted 130 total public markets manager searches in 2024.
Commitments to the private infrastructure fund market ticked up amid a stronger fundraising environment as institutions seek strategies that offer inflation protection and stability.
Allocations to illiquid asset classes will provide university portfolios with stronger returns relative to public equity or bond markets over the long term, despite liquidity or spending squeezes in the short term.