Key Takeaways
- • UNC Management Company's 2026 endowment return of 37.8% for the fiscal year ended June 30 was driven largely by a $2 million investment in SpaceX made in 2009, according to people familiar with the matter cited by PitchBook.
- • The UNC Investment Fund, which includes at least $4 billion in non-endowment capital, posted the highest return reported so far among the 50 largest US endowments, per PitchBook's endowment return tracker.
- • Assets under management rose to roughly $17 billion from $12.5 billion a year earlier.
- • CIO Stefan Strein told UNC-Chapel Hill trustees in September that SpaceX accounted for about half of the return, with the rest of the portfolio generating approximately 19%.
- • The $2 million check was made through Founders Fund; PitchBook data put SpaceX at about $500 million in value at the time, and Bloomberg reported in August that UNC had sold about $1 billion of shares while retaining a stake worth more than $1 billion.
Summary
The University of North Carolina's exceptional fiscal 2026 returns trace back to a $2 million investment in SpaceX made in 2009, according to people familiar with the matter. UNC Management Company, which invests on behalf of the 17 institutions in the North Carolina university system, made the investment through Founders Fund, the venture firm where PayPal co-founder Peter Thiel is a partner. At the time, PitchBook data valued Elon Musk's commercial aerospace business at about $500 million.
The UNC Investment Fund returned 37.8% in the fiscal year ended June 30, the highest return reported so far among the 50 largest US endowments, according to PitchBook's endowment return tracker. The fund includes at least $4 billion in non-endowment capital. Its assets under management rose to around $17 billion from $12.5 billion a year earlier.
Stefan Strein, president and chief investment officer of UNC Management Company, told UNC-Chapel Hill trustees at a September meeting that the SpaceX position accounted for about half of the result: "it was about half SpaceX." The remaining portfolio generated approximately 19%, outperforming both the endowment's strategic asset allocation benchmark and a model portfolio of 70% stocks and 30% bonds, he said. Bloomberg reported in August that UNC had sold about $1 billion of its SpaceX shares and still held a stake worth more than $1 billion. SpaceX listed on the Nasdaq in June, raising $86.25 billion at a valuation of $1.78 trillion. It is unclear how much additional capital UNC committed to SpaceX in later years, and UNC Management did not respond to a request for comment.
Strein cited the perpetual time horizon of the endowment as a factor in its ability to withstand market volatility. The investment was not universally supported: former UNC-Chapel Hill Chancellor Holden Thorp told The Assembly this year that he opposed a Founders Fund proposal to increase the university's SpaceX exposure around 2009, doubting the capital-intensive rocket company could raise enough money to survive.
The UNC Investment Fund returned 37.8% in the fiscal year ended June 30, the highest return reported so far among the 50 largest US endowments, according to PitchBook's endowment return tracker. The fund includes at least $4 billion in non-endowment capital. Its assets under management rose to around $17 billion from $12.5 billion a year earlier.
Stefan Strein, president and chief investment officer of UNC Management Company, told UNC-Chapel Hill trustees at a September meeting that the SpaceX position accounted for about half of the result: "it was about half SpaceX." The remaining portfolio generated approximately 19%, outperforming both the endowment's strategic asset allocation benchmark and a model portfolio of 70% stocks and 30% bonds, he said. Bloomberg reported in August that UNC had sold about $1 billion of its SpaceX shares and still held a stake worth more than $1 billion. SpaceX listed on the Nasdaq in June, raising $86.25 billion at a valuation of $1.78 trillion. It is unclear how much additional capital UNC committed to SpaceX in later years, and UNC Management did not respond to a request for comment.
Strein cited the perpetual time horizon of the endowment as a factor in its ability to withstand market volatility. The investment was not universally supported: former UNC-Chapel Hill Chancellor Holden Thorp told The Assembly this year that he opposed a Founders Fund proposal to increase the university's SpaceX exposure around 2009, doubting the capital-intensive rocket company could raise enough money to survive.
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