Harvard's gonna be aiight
It's like Bezos complaining about ATM fees ...
Ok, Harvard here is your playbook:
1. Unrestricted Endowment Maneuvers
My research tells me that 80% of the Harvard endowment is restricted, but that leaves $8–$10 billion unrestricted. That’s a war chest most universities would kill for.
You could temporarily increase the endowment payout rate from 4.5% to 6% for a few years. That alone could free up an extra $1B+ annually.
Without touching principal
But what about the long-term?
Harvard’s endowment returns have averaged 7–8% over the last decade.
A few years of higher drawdown is a rounding error.
2. Debt Market Flex
Harvard has a AAA credit rating and can issue tax-exempt bonds at rates that make the U.S. Treasury jealous.
A $1B shortfall?
Harvard could float a 30-year bond, pay 3% interest, and barely notice the debt service in its annual budget.
The bond market would eat it up, because “Harvard” is basically a synonym for “risk-free.”
3. Alumni “Emergency” Campaign
Last time I checked Harvard’s alumni network is a who’s who of moguls, senators, and ex-cons. A single “Save Our Research” gala could raise $1B in a weekend.
“Hey, Zuckerberg, you want your name on a new AI center? Pony up.” 🧐
Harvard should focus on:
flexibility of its unrestricted assets
access to ultra-cheap capital markets
the power of its alumni network