Princeton Endowment Returns 23.7%, Reaches Record $42.3B

Princeton University’s endowment returned 23.7% in fiscal 2026, lifting its value to a record $42.3 billion and strengthening the financial foundation of a university heavily dependent on investment distributions.

The performance for the year ended June 30 more than doubled fiscal 2025’s 11% return. Endowment assets increased approximately $5.9 billion, or 16.2%, from $36.4 billion.

The total surpassed Princeton’s previous peak of $37.7 billion in 2021, when the endowment generated a record 46.9% return. Over the latest five-, 10- and 20-year periods, annualized returns averaged 6.7%, 11.3% and 9.7%, respectively, according to Princeton Alumni Weekly.

Princeton nevertheless trailed Harvard University, which reported a 27.1% fiscal 2026 return

Princeton’s investment office, Princo, maintains substantial exposure to equities and equity-like assets, which represented 94% of the portfolio in its fiscal 2025 disclosures.

Private equity accounted for more than $14 billion, including investments in private companies and venture capital. Another $8.7 billion was allocated to “independent return” strategies, including long/short equity and event-driven investments. The program also includes real estate and natural resources.

The university has not disclosed fiscal 2026 asset-class returns or an updated allocation, limiting conclusions about which strategies drove the gain.

Despite the strong year, Princeton continues to plan around an 8% long-term investment return. Endowment distributions are projected to cover 65% of Princeton’s fiscal 2027 net operating budget, making sustained performance central to funding teaching, research and financial aid while maintaining financial flexibility over time.