Mercer Times

For the fiscal year ending June 30, 2024, Princeton University's endowment reported a 3.9% investment gain, bringing its total value to $34.1 billion. Over the past decade, the average annual return on the endowment has been 9.2%, with a slightly higher average of 9.9% over the past two decades.

The endowment serves as a financial backbone for Princeton's educational and research missions, including its robust financial aid program that enables students from diverse backgrounds to attend without incurring debt. "Generations of generous philanthropy, coupled with excellent stewardship of our endowment, enable the University to make bold investments in human talent," said Provost Jennifer Rexford. "The endowment allows us to offer unparalleled financial support to our students, launch major research initiatives and build state-of-the-art facilities."

Princeton's endowment supports various aspects of university life such as expanding financial aid programs and increasing undergraduate enrollment with more first-generation college students and those from lower-income or military backgrounds. The financial aid model ensures that most families earning up to $100,000 annually pay nothing toward their student's education costs. Even families earning beyond $300,000 may receive grant aid under certain conditions.

Research initiatives funded by the endowment cover areas like quantum computing, artificial intelligence, climate science, and medical research into diseases such as Alzheimer's and cancer. Capital projects are also supported by these funds to accommodate student body growth and enhance campus facilities related to health, well-being, and the arts.

Additionally, service programs allow collaboration between students and faculty with local communities in New Jersey and globally. Outreach efforts focus on supporting first-generation and lower-income students through partnerships with community colleges.

Endowment earnings account for approximately two-thirds of Princeton's net annual operating revenues. This proportion has increased over time; in 1997 only one-third of revenue was sourced from these earnings. In fiscal year 2024 alone, distributions from the endowment reached $1.7 billion.

Over two decades, contributions totaling $19.8 billion have nearly doubled the initial value of Princeton’s endowment during that period. Currently covering 70% of undergraduate financial aid budgets helps bolster socioeconomic diversity within the student population.

The fiscal year 2024 investment results were certified by Princeton University Investment Company (PRINCO) board earlier this month.