The University of Michigan’s endowment climbed $2 billion to a market value of $21.2 billion during the past fiscal year, with distributions of $538 million.

The university’s long-term investment portfolio has seen an annualized return of 9.8% since the university established a separate investment office. This is well into the top quartile for endowments at higher education institutions in the United States, according to Cambridge Associates.

“Our investments in innovation and climate friendly solutions continue to positively impact returns in a meaningful way,” said Chief Investment Officer Erik Lundberg. 

A detailed investment report will be available later this year. 

Distributions from the endowment are an important funding source for actions critical to the mission of the university, with 29% of FY ’25 distributions going to scholarships, 23% to patient care, 23% to teaching, and 15% to support research.

“Our endowment contributes hundreds of millions of dollars each year in support of the university’s mission as a public research institution and health care provider,” said Geoffrey Chatas, executive vice president and chief financial officer. “The consistent, strong investment performance benefits our students, patients, employees and Michigan residents.”

The university’s endowment is a collection of about 13,500 separate funds. These funds provide support that is restricted in most cases for specific purposes such as educational programs, research and professorships.

U-M’s endowment ranks 85th on a per-student basis among all U.S. universities, according to a recent report from the National Association of College and University Business Officers. Unlike several private peer institutions with similarly sized or larger endowments, U-M’s endowment supports a much larger student body and campus community.