Key Takeaways
- • The University of Illinois Foundation reported a 9.6% return on its active endowment for fiscal year 2026 (ended June 30, 2026), up from 3.3% the prior year, which was the lowest among U.S. university foundations.
- • The active endowment grew to $3.32 billion during fiscal 2026, according to results announced at the foundation's Oct. 23 annual meeting.
- • A Nov. 2 paper by two Gies College of Business professors estimated the endowment pool would have been about $771 million larger had it earned benchmark returns from July 2015 through June 2026.
- • The University of Illinois System, which operates independently, reported a 14.6% return on its Long-Term Investment Pool and 3.8% on its Operating Pool for fiscal 2026.
- • The foundation distributed $103.3 million to the University of Illinois System and announced record new business of $748.3 million.
Summary
The University of Illinois Foundation reported a 9.6% return on its active endowment for fiscal year 2026, which ended June 30, a rebound from the 3.3% return it posted the year before. That 2025 result was the lowest among U.S. university foundations and well below the foundation's 13.2% investment benchmark. According to Pensions & Investments, the 2025 return compared with a 10.9% median among 46 college and university endowments with at least $1 billion in assets. The foundation announced the fiscal 2026 results at its annual meeting on Oct. 23, reporting that the active endowment grew to $3.32 billion.
The foundation did not respond to questions about its fiscal 2026 investment performance, including inquiries about its benchmark. On Nov. 2, two professors from Gies College of Business published a paper evaluating the foundation's investment performance from July 2015 through June 2026. They estimated the endowment pool would have been about $771 million larger on June 30, 2026 had it earned benchmark returns.
The foundation's fiscal 2025 results followed a restructuring of portions of its private investment portfolio, including a $245 million secondary sale that generated $121.5 million in proceeds, according to its financial disclosures. The foundation also reported a $119.8 million investment write-down tied to legacy private market investments, which it said was intended to reduce exposure to higher-risk, less-liquid assets and improve long-term performance.
Separately, the University of Illinois System, which operates independently of the foundation, reported a 14.6% return on its Long-Term Investment Pool and 3.8% on its Operating Pool for fiscal 2026, according to the system's Office of Investments annual report. The foundation distributed $103.3 million from the endowment to the System in fiscal 2026, including $80.9 million to Urbana-Champaign, $18.8 million to Chicago, $1.2 million to Springfield and $2.4 million to System offices. It also reported record new business of $748.3 million from nearly 194,000 gifts by more than 50,000 donors, with $292.7 million designated for academic programs, $156.4 million for student support and $109.8 million for research. Cash flow totaled $444 million.
In an Oct. 23 release, President and CEO James H. Moore Jr. credited donors, and CFO and COO Christy Devocelle attributed the foundation's strong financial position to its management of donated assets. The complete annual report, with expanded financial information and commentary from the chief investment officer, is expected in late November. The audit was not available at the time of publication.
The foundation did not respond to questions about its fiscal 2026 investment performance, including inquiries about its benchmark. On Nov. 2, two professors from Gies College of Business published a paper evaluating the foundation's investment performance from July 2015 through June 2026. They estimated the endowment pool would have been about $771 million larger on June 30, 2026 had it earned benchmark returns.
The foundation's fiscal 2025 results followed a restructuring of portions of its private investment portfolio, including a $245 million secondary sale that generated $121.5 million in proceeds, according to its financial disclosures. The foundation also reported a $119.8 million investment write-down tied to legacy private market investments, which it said was intended to reduce exposure to higher-risk, less-liquid assets and improve long-term performance.
Separately, the University of Illinois System, which operates independently of the foundation, reported a 14.6% return on its Long-Term Investment Pool and 3.8% on its Operating Pool for fiscal 2026, according to the system's Office of Investments annual report. The foundation distributed $103.3 million from the endowment to the System in fiscal 2026, including $80.9 million to Urbana-Champaign, $18.8 million to Chicago, $1.2 million to Springfield and $2.4 million to System offices. It also reported record new business of $748.3 million from nearly 194,000 gifts by more than 50,000 donors, with $292.7 million designated for academic programs, $156.4 million for student support and $109.8 million for research. Cash flow totaled $444 million.
In an Oct. 23 release, President and CEO James H. Moore Jr. credited donors, and CFO and COO Christy Devocelle attributed the foundation's strong financial position to its management of donated assets. The complete annual report, with expanded financial information and commentary from the chief investment officer, is expected in late November. The audit was not available at the time of publication.
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