Gurley notes US universities issued $12B debt in Q1 2025, third highest ever, signaling liquidity crisis.
“US colleges and universities issued $12,000,000,000 of debt, which was the third highest quarter ever.”
Gurley notes Yale model achieved 13% returns over 35 years by overweighting illiquid assets.
“Yale, I think they say had a 13% compounding return over thirty five years under David Swenson. He is known for the Yale model.”
Gurley questions if Yale model works when universally adopted, notes Yale itself selling $6B.
“What if everyone goes to 50% illiquid? Will it still work? I think that's a provocative question. But I think that's what happened for sure.”
Gurley argues most US endowments and foundations are now overinvested in private equity and venture capital.
“I think the Swinson mimic effect has now played out. And I think personally that most of the endowments and foundations in The US are over invested in private, both PE and venture.”
Gurley argues most US endowments and foundations are over-invested in private markets with no incentive to get paper marks right.
“And I think that the way the industry is structured in this would require longer conversation. There's no incentive for the operators inside of the endowments or foundations to get the paper marks right.”