MIT endowment rises 23 percent to $8.4 billion

The Massachusetts Institute of Technology said on Wednesday that its endowment earned a 23 percent return to increase to $8.4 billion in its latest fiscal year.

MIT's endowment increased by $1.7 billion over the prior fiscal year, according to MIT's in-house investment management company. Each fiscal year ends June 30.

Across town, Harvard University reported last month that its endowment increased to $29.2 billion, tops in the nation.

The MIT investment division is led by Seth Alexander, who became president in May, succeeding Allan S. Bufferd, who retired as MIT's treasurer and founding president of the investment arm after 34 years.

It manages and oversees the investment of MIT's endowment, retirement plans and operating funds. The endowment's annualized 10-year performance average has been 15.3 percent, the university said.

MIT was the sixth-richest university in the nation last year, according to a study released in January by the National Association of College and University Business Officers. Harvard was first, followed by Yale.