Duke’s gains soar – Investing in pivate equity

DURHAM, N.C. — The endowment at Duke University surged 58 percent to $2.66 billion in the fiscal year that ended June 30, The News & Observer in Raleigh reported Oct. 6.

Last year, the highest growth rate for a university endowment was 29 percent, the newspaper said.

Harvard has reported that its endowment grew 32.2 percent to $19.2 billion, the largest in the U.S., while Notre Dame has reported a return of 57.9 percent.

The larger the endowment, the more room universities have to invest in private equity, including high-risk, high-return venture capital and leveraged buyouts, the newspaper said.

Duke began making such investments on a significant basis in the late 1980s, Thruston Morton III, the president of Duke Management Co., told The News & Observer.

“We’re now harvesting the rewards of that,” he said.

Private equity, the largest part of Duke’s portfolio, posted a return of 214.5 percent.

For full story, go to The News & Observer.

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