Key Takeaways
- • Brown University's endowment reached $9.5 billion as of June 30, 2026, a nearly 19% increase from $8 billion a year earlier, after a 19.6% investment return in fiscal 2026 that generated $1.6 billion in gains.
- • The University expects its federal endowment tax rate to rise to 4% in FY27 from 1.4%, according to a University statement released Friday.
- • The endowment contributed an all-time high of $357 million to Brown's operating budget in FY26, equal to 24% of total university revenue.
- • Brown's 19.6% return places it in the top 25% of institutions managing over $1 billion, per Cambridge Associates data, while its 13.6% annualized 10-year return ranks in the top 5%.
- • Chief Investment Officer Jane Dietze will leave Brown on Dec. 31 and be succeeded by Deputy CIO Joshua Kennedy, who has served in that role since 2022.
Summary
Brown University's endowment reached $9.5 billion at the close of fiscal 2026 on June 30, according to the University, following a 19.6% investment return that generated $1.6 billion in investment gains. The endowment's valuation rose nearly 19% from last year's $8 billion, and the return is the highest in the past five years. The University's FY26 return followed gains of 11.9% in FY25 and 11.3% in FY24.
The growth is expected to raise Brown's federal endowment tax liability. The University anticipates paying a 4% endowment tax in FY27, up from 1.4%, as a result of the endowment's growth, according to a University statement released Friday. Brown's 2025 endowment report had indicated a 4% rate would apply in the coming year, but Deputy Chief Investment Officer Joshua Kennedy said the University was charged at 1.4% for FY26. Kennedy said the University has been anticipating the change for some time and noted that enrollment, gifts, and payout rates make the final endowment-per-student calculation uncertain.
The endowment contributed an all-time high of $357 million to the operating budget, supporting scholarships, professorships, academic programs, and research. That amount represents 24% of the University's FY26 total revenue. Distributions are limited to 4.5% to 5.5% of the average market value of the endowment, a range the University Resources Committee recommends annually. Growth also reflected $135 million in new endowed gifts and $200 million received from Brown University Health through expanded affiliation agreements.
According to data cited by Cambridge Associates in the University's release, Brown's 19.6% return ranks in the top 25% of institutions managing more than $1 billion, and its 13.6% annualized return over 10 years places it in the top 5% of reported returns. Kennedy described the Investment Office's approach as an "all-weather strategy" focused on durability, relying on diversification and manager diligence rather than macroeconomic forecasts. Penn, the only other Ivy League institution to have released FY26 returns, reported a 27.4% return.
Jane Dietze, who has managed the endowment as Chief Investment Officer since 2018, will leave the University on Dec. 31. Kennedy, deputy CIO since 2022, will succeed her.
The growth is expected to raise Brown's federal endowment tax liability. The University anticipates paying a 4% endowment tax in FY27, up from 1.4%, as a result of the endowment's growth, according to a University statement released Friday. Brown's 2025 endowment report had indicated a 4% rate would apply in the coming year, but Deputy Chief Investment Officer Joshua Kennedy said the University was charged at 1.4% for FY26. Kennedy said the University has been anticipating the change for some time and noted that enrollment, gifts, and payout rates make the final endowment-per-student calculation uncertain.
The endowment contributed an all-time high of $357 million to the operating budget, supporting scholarships, professorships, academic programs, and research. That amount represents 24% of the University's FY26 total revenue. Distributions are limited to 4.5% to 5.5% of the average market value of the endowment, a range the University Resources Committee recommends annually. Growth also reflected $135 million in new endowed gifts and $200 million received from Brown University Health through expanded affiliation agreements.
According to data cited by Cambridge Associates in the University's release, Brown's 19.6% return ranks in the top 25% of institutions managing more than $1 billion, and its 13.6% annualized return over 10 years places it in the top 5% of reported returns. Kennedy described the Investment Office's approach as an "all-weather strategy" focused on durability, relying on diversification and manager diligence rather than macroeconomic forecasts. Penn, the only other Ivy League institution to have released FY26 returns, reported a 27.4% return.
Jane Dietze, who has managed the endowment as Chief Investment Officer since 2018, will leave the University on Dec. 31. Kennedy, deputy CIO since 2022, will succeed her.
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