Yale University
EndowmentConnecticut · as of FY2024
AUM
$41B
Held in U.S. securities
$4B
10% of AUM
Return target
8.4% nominal / 5.4% real long-run target
Asset allocation policy
Target weights set by the investment committee in the plan's Investment Policy Statement; performance is measured against the listed benchmarks.
| Asset class | Target | Benchmark | $ value |
|---|---|---|---|
| Venture capital | 23% | Cambridge Associates VC Index | $9B |
| Absolute return (hedge funds) | 23% | HFRI Fund Weighted Composite | $9B |
| Leveraged buyouts | 18% | Cambridge Associates Buyout Index | $7B |
| Foreign equity | 12% | MSCI ACWI ex-U.S. | $5B |
| Real estate | 9% | NCREIF Property Index | $4B |
| Bonds & cash | 9% | Bloomberg U.S. Treasury | $4B |
| Natural resources | 3% | Composite (timber + energy) | $1B |
| Domestic equity | 2% | Russell 3000 | $1B |
Holdings overview
Highest VC allocation in the peer group at ~23%. Public equity exposure is unusually low (<15%). Private partnerships are the dominant access mode across nearly every asset class.
Board mandates
- Pioneered the "Yale Model" — heavy allocation to alternatives, very low to public equity and bonds.
- Endowment funds ~35% of Yale's operating budget; spending policy designed to absorb market shocks via smoothing.
- Net-zero by 2050 commitment; fossil fuel divestment policy (2021) for thermal coal and oil sands manager screens.
- Manager selection emphasizes long-tenure relationships; investment office known for unusually low turnover.
Spending rule
5.25% of trailing market value, smoothed over 3 years
Source: investments.yale.edu