Harvard University is in advanced negotiations to sell private equity fund interests worth approximately $1 billion, according to a source familiar with the situation. This sale process, which began last year, is not linked to potential funding cuts threatened by former President Donald Trump.

The Harvard Management Company, which manages the largest endowment in U.S. higher education, is working with Jefferies Financial Group to facilitate the sale to private equity firm Lexington Partners. The specifics of the deal, possibly involving a secondaries transaction, are still being finalized and may change.

This move comes as investors seek to liquidate private credit holdings to navigate the current market volatility exacerbated by Trump's trade policies. However, the sale is not indicative of a shift in asset allocation for Harvard's $53 billion endowment. As of 2024, 39% of Harvard's funds were allocated to private equity, an increase from 34% in 2021, when the university also sold nearly $1 billion in similar transactions.

Earlier this month, Harvard announced plans to borrow $750 million from Wall Street as part of its contingency measures. This financial maneuver coincides with Trump's threats to withhold federal funding from universities over various issues, including campus protests related to the Israel-Gaza conflict and policies on climate, diversity, and inclusion.

In response to these pressures, advocates, students, and faculty members have urged university leadership to resist the Trump administration's demands. Similarly, Yale University has also indicated it is exploring the sale of private equity fund interests, with Evercore advising them on the process.