Author: Amy Paterson

October is when the biggest university endowments − those with over $1B − share their annual investment results. From these early reports, we can glean what performance drivers we will see, ahead of the full NACUBO-Commonfund Study of Endowments, which comes out in February 2026.

The average return of $1B+ university and college endowments that publicly announce is 11.5% vs. 12.7% for the 65% MSCI ACWI / 35% Bloomberg Agg. This represents the second consecutive year of double-digit gains, following an 11.2% average 1-year performance for all institutions in FY24, per the NACUBO-Commonfund Study of Endowments. However, the trends of what drove performance have shifted in FY25.

FY25 Endowment Returns

What is driving the returns?

1. A return to long-term trends: top-performing endowments have large private equity allocations. Certain sub-asset classes like growth or pre-IPO private equity outperformed. Broadly, the return spread between the allocations appears to be narrowing with private equity and venture posting high single digit/low double digit returns vs. 15.2% for the S&P 500, a spread of only 300-500bp.
2. Strong absolute returns in an unusual year where both equities and bonds contributed positive returns. Both risk and diversifying assets performed well, highlighting broad macro and economic concerns despite strong equity returns.
3. AI continues to drive equity markets. Portfolios with exposure to AI-related themes like Nvidia outperformed.
4. Return of international performance. FY25 made the case for international diversification in equities, with MSCI ACWI ex US (17.7%) outperforming the S&P 500 (15.2%).
5. Broad performance in diversifying assets, including gold. Investors looked for and received performance in a swath of uncorrelated asset classes, including gold, hedge funds and traditional fixed income.

Finally, the Endowment Tax is coming. Multiple private universities commented on the forthcoming increase in tax rate in their FY25 annual reports and endowment return press releases. The increase in the Endowment Tax rates goes into effect for taxable years beginning after December 31, 2025. For institutions with a fiscal year end of June 30, this means the new tax rate would apply starting July 1, 2026.

FY25 Asset Class Returns

How did individual endowments do?

When looking at individual returns, the Ivy League and other renowned private endowments returned slightly above the total group. The top three returns came from public universities, with University of Wisconsin-Madison the highest FY25 performer with 16.2%.

FY25 Returns Publicly Announced

Case study: private allocation of top performers

Looking at top performers’ asset allocation, it’s clear that the two-year trend of large private allocations being a detractor has come to a conclusion. Among the top performers that publicly release their asset allocation, each had approximately one-third or greater invested in private equity. A standout example on the strength in late-stage venture/growth is University of Michigan, which returned 15.5%. University of Michigan states that 28% of its portfolio is in venture capital with an additional 9% in private equity.

FY25 Top Returners Private Allocation

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute an offer or advertisement of TIFF’s investment advisory services or investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.

These materials may contain forward-looking statements relating to future events. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Although TIFF believes the expectations reflected in the forward-looking statements are reasonable, future results cannot be guaranteed.

Independent investment firm focused on OCIO and private markets solutions for nonprofits joins global community focused on driving business as a source for good.

Radnor, Pa. – October 21, 2025 – TIFF Investment Management, an independent, employee-owned investment firm specializing in OCIO and private markets solutions for mission-driven organizations and sophisticated investors, proudly announces it is now a Certified B Corporation^™ (B Corp). This designation is reserved for businesses that meet high standards of verified performance, accountability, and transparency on factors measured across items such as employee benefits and charitable giving.

With an enduring focus on helping institutions achieve impact, TIFF was founded in 1991 as a cooperative-style organization where nonprofit foundations lacking sufficient internal resources could access the innovative investment approaches utilized by large foundations, universities, and other endowments. This experience has given TIFF a keen understanding of how investment strategy can support an organization’s philanthropic goals​, enabling them to achieve long-term growth.

Today, TIFF partners with endowments, foundations, RIAs, family offices, and other institutional organizations seeking comprehensive OCIO services and access to specialized strategies in private equity, venture capital, and hedge funds. As an independent, employee-owned firm organized as a public benefit company, TIFF delivers partnership to clients with a strong commitment to service and investment performance. TIFF’s commitment to service is reflected through its team members’ active involvement in various charitable endeavors.

“We are honored to join the esteemed network of B Corps, leading a global movement for an inclusive, equitable, and regenerative economy,” said Kane Brenan, CEO, TIFF Investment Management. “Business for good is central to our founding mission and extends to our approach in all we do for our clients, helping them advance their objectives with custom portfolio construction and proven investment strategies.”

B Lab™, a nonprofit transforming the global economy to benefit all people, communities, and the planet, evaluated TIFF in five key areas of impact—Governance, Workers, Environment, Community, and Customers—and reviewed TIFF’s legal framework to ensure it considers all stakeholders. All B Corps post their assessment score to B Lab Global’s website for complete transparency. See TIFF’s profile here.

“B Corps distinguish themselves from other companies with their commitment to driving a positive impact on society and the environment—a commitment TIFF Investment Management has clearly demonstrated since its founding,” said Max Hayes, Growth Manager, B Lab U.S. & Canada. “We are thrilled to have TIFF join our growing global network of organizations using business as a source for good, and we look forward to its contributions to our common mission.”

About TIFF Investment Management

TIFF Investment Management is an independent, employee-owned investment firm specializing in Outsourced Chief Investment Officer (OCIO) services and alternative investment strategies, including private equity, venture capital, and hedge funds. Founded in 1991, with nearly $9B¹ in assets under management, TIFF draws on decades of experience serving nonprofits and other purpose-driven organizations. As a Certified B Corporation™, TIFF embeds accountability, transparency, and sustainability into its operations and investment practices. TIFF combines nonprofit expertise with institutional-quality access, partnering with long-term investors to deliver sustainable growth and enduring results that can advance their long-term objectives. Learn more at www.tiff.org.

¹ TIFF assets under management (AUM) is as of 6/30/25 and includes discretionary and non-discretionary client assets for which TIFF affiliates provide investment management or advisory services. The private markets portion of TIFF AUM is calculated based upon fund net asset value plus unfunded commitments. Calculation of TIFF AUM differs from the calculation of regulatory assets under management in TIFF’s Form ADV filings with the SEC and may differ from the AUM calculation methodologies used by other investment managers.

B Lab is the independent third party that certifies companies as B Corporations when they meet high standards of social and environmental performance, accountability, and transparency. B Lab certified TIFF Advisory Services, LLC as a B Corporation on September 12, 2025. To remain certified, B Corporations must recertify every three years.

About B Lab

B Lab is a nonprofit transforming the global economy to benefit all people, communities, and the planet. A leader in economic systems change, our global network creates standards, policies, tools, and programs for business, and we certify companies, known as B Corps, that are leading the way. To date, our community includes 1,000,000 workers in over 10,000 B Corps across 103 countries and 160 industries. To learn more, visit bcorporation.net.

About B Lab U.S. & Canada

B Lab U.S. & Canada is a partner in the B Global Network, a unified group of global, regional, and national organizations that power a business movement as a force for good.  A historic global culture shift is underway to harness the power of business to help address society’s greatest challenges. Our global network creates standards, policies, tools, and programs that shift the behavior, culture, and structure of capitalism. B Lab certifies companies — known as B Corps — who are leading the way. Our vision is an inclusive, equitable, and regenerative economic system for all people and the planet.

For more information, visit usca.bcorporation.net and www.bcorporation.net.

About B Corp Certification

Certified B Corporations, or B Corps, are companies verified to meet B Lab’s standards of social and environmental performance, transparency, and accountability. Based on stakeholder input, research, and established best practices, B Lab’s standards are the basis for B Corp Certification requirements and B Lab’s impact management tools, and they inform the network’s programs and collective action initiatives.

Contact: For media inquiries, please email: karen@grahammediapartners.com.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. There is no guarantee that any particular asset allocation or mix of strategies will meet your investment objectives.

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.

These materials may contain forward-looking statements relating to future events. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Although TIFF believes the expectations reflected in the forward-looking statements are reasonable, future results cannot be guaranteed.