ABILENE, Texas — Net assets for Abilene Christian University now total more than $1 billion, marking a new level of financial health and stability, the university announced Wednesday.
The university reached the billion-dollar milestone in November, thanks in part to donors during ACU’s Higher Ground campaign, as well as the outstanding performance of the university's endowment, chief financial officer Lori Herrick, said. The two new freshmen residence halls and the new Dillard Science and Engineering Research Center (SERC) have improved the property value of the campus by over $96 million in the last year, as well.
“This growth is directly impacting our commitment to students through the new living and community experiences within the new residence halls, the tremendous opportunity for research within the SERC and the significant support in scholarships and academic experiences through the growth of the endowment,” Herrick said in an ACU release.
ACU’s endowment – valued at $788 million, as of December 2023 – benefits the university in perpetuity annually. The capital is invested for long-term growth and a portion of the funds are spent each year.
The diversified nature of the endowment has helped protect returns in an environment where active management in public markets has been challenging and where private markets have seen significant inflows, chief investment officer and Abilene Christian Investment Management Company president, Joe Lee, said.
In the 10-year period, the endowment has produced an annualized return of 10.8%, compared to the benchmark return of 5.8% annually, placing ACU in the top 10% of performance among peer universities.
“The endowment serves the university, and its north star is always to increase the financial strength and flexibility of ACU,” Lee said. “Reaching $1 billion in net assets is another notable milepost and an affirmation of our continued efforts to serve and support students in pursuing academic excellence.”
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