Stanford University has pulled $5 billion of private-partnership interests from the auction block due to a recovery in the stock and bond markets, the Wall Street Journal reported.
During the recession top universities shored up their weakened finances by selling bonds and in September Stanford said it was shedding a further 60 positions due to an estimated 30 percent drop in its endowment [ID:nN24455442] [ID:nN02315187]
The Journal said on Tuesday the Silicon Valley university, which was looking to raise cash by selling some private equity, natural resources and real estate assets, had now determined that its overall endowment liquidity had improved with recovering stock and bond markets.
Stanford officials decided against the sale despite receiving four final bids valuing the portfolio in the range of 80 cents to 85 cents of their appraised value on Sept. 30, the paper said citing a person familiar with the matter.
The endowment at Stanford, the third largest of any U.S. university, had dropped in value to $12.6 billion as of Aug. 31, compared with a year ago, hurt by volatile markets.
Stanford University was not immediately available for comment. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Mike Nesbit)