University of Chicago Sells Prized Research Center Amid $200M Deficit and Spending Cuts

CHICAGO — The University of Chicago, long renowned for its contributions to economics and finance, announced it is selling the Center for Research in Security Prices (CRSP) as the institution confronts heavy debt and weaker-than-expected endowment returns.

Founded in 1960 by UChicago professors, the CRSP has been central to research that helped win the 2013 Nobel Prize in economics. Proceeds from the $375 million sale will be added to the university's endowment and invested to boost returns, a university spokesman said. The transaction is expected to close in the fourth quarter of 2025.

The sale follows a series of financial challenges for UChicago. The private institution recently unveiled $100 million in spending cuts and plans to suspend or scale back several PhD and graduate programs to rein in a budget deficit that has surged to more than $200 million in recent years.

"The fact that they have to sell a celebrated part of the university now is very telling of how poor their fiscal situation is," said Hunter Lewis, co-founder of Cambridge Associates.

UChicago's endowment, totaling roughly $10 billion, delivered an annualized return of 6.7% over the 10 years ending in 2024, one of the weakest performances among major U.S. universities. The university has maintained a more conservative investment approach than peers, with greater exposure to fixed income and less to equities since the 2008 global financial crisis, according to Chief Financial Officer Ivan Samstein.

Despite its cautious investment strategy, UChicago invested $64 million in cryptocurrencies in 2021. Samstein said the holdings "well more than doubled" in value but were "not designed for cash flow."

The university's debt also increased substantially. Over the decade ending in 2024, notes and bonds payable climbed by roughly two-thirds to $6.1 billion, reflecting major investments in research capacity for areas such as molecular engineering and quantum science.

But federal funding cuts have added to the university's financial strain. Since the beginning of the Trump administration, federal agencies rescinded about 65 grants awarded to UChicago faculty, affecting fiscal 2025 revenue by $10 million to $15 million, with projected longer-term shortfalls exceeding $40 million starting in 2026, according to UChicago President Paul Alivisatos.

To address the deficit, the university has paused faculty growth, reduced PhD enrollment, scaled back capital projects, and curtailed funding for certain research centers. Katherine Baicker, UChicago's provost, emphasized that spending reductions would be gradual while the university continues to invest in high-priority areas such as quantum computing.